All you know about Excise and Taxation in Pakistan

Pakistan’s excise and taxation department are responsible for collecting provincial taxes and duty fees according to the respective laws. The Excise department is responsible for tax facilitation and tracing out illegalities and smuggled vehicles.

Every province has its independent excise and taxation department dealing in the collection of various taxes along with performing regulatory and public welfare services like vehicle registration and development of areas. Also read our blog PLRA online booking appointment.

The taxation and excise department is also responsible for registering vehicles and collecting real estate taxes. However, the department performs exclusive duties in all provinces and is responsible for multiple functions. The department is vital in collecting revenue and ensuring transparency for years.

Realtorspk.com has gathered information about all central excise and taxation departments of Pakistan. The information is useful when any help regarding taxation or excise is required.

Excise, Taxation and Narcotics Department of Pakistan:

Here is the list of excise and taxation departments of Pakistan, along with the function which they are performing in making Pakistan a better country.

1. Excise and Taxation Department Islamabad:

The excise and taxation department of Islamabad, commonly known as Excise and taxation Islamabad, is responsible for collecting various types of taxes and excise duties from the federal citizens. These taxes include professional taxes, education access, real estate or vehicle tax, etc.

On the other hand, Excise duty stands for indirect taxes, which are imposed on various goods that are directly or indirectly dangerous to the environment and health. Also read out our guide on property registration process in pakistan.

Let’s briefly look at services provided by excise and taxation Islamabad provides to facilitate the citizens.

Tax Collection Services:

• Professional Tax: A tax on income generated by trade or business that is not included under Excise or other laws. NTN Verification is required for paying these taxes
• Bed Tax: A Tax imposed on hotels in Islamabad with at least 25beds.
• Vehicle/ Real Estate Dealer Tax: All vehicle/motor and real estate dealers within the boundaries of Islamabad are bound to pay these Taxes.
• Education Cess: Any company that comprises ten or more employees are bound to pay these taxes.

Excise Duty:

Excise Duty is charged on items which directly or indirectly harmful. These duties are imposed to increase the product’s prices and discourage the use of items. Among many items, the excise duty is imposed on:

• Liquor and Liquor products
• Tobacco products
• Entertainment Duty on events

Vehicle Registration:

Vehicle Registration has been made easier with the Islamabad excise and taxation office. Registering, verifying, and transferring vehicle ownership can be done online by visiting the Excise and taxation department. You can also apply for online token.

2. Excise Taxation and Narcotics Department of Punjab:

Excise and Taxation Punjab, officially known as the Excise, Taxation, and Narcotics Control Department of Punjab, is run by the provincial government and performs various duties. Let’s look at the roles of the excise and taxation Punjab department in benefiting residents of the province.

Punjab excise and taxation:

There are 9 different types of provincial taxes which the department collects:

• Property Tax: The tax has to be paid by all real estate owners. The Taxpayer can visit the local department office or pay tax online. For instance, residents can visit Excise and Taxation Rawalpindi or Excise and Taxation Lahore regional office.
• Vehicle/ Motor Tax: The tax has to be paid by every vehicle owner, including motorcycles, rickshaws, cars, trucks, taxis, agricultural vehicles, etc.
• Professional Tax: It is also commonly known as income tax, is implied to every businessman and employee.
• Excise Duty: To be paid by any person involved in the business of narcotics and other items.
• Entertainment Duty: It is imposed on sports, exhibitions, plays, and other entertainment shows
• Fee on Cotton: A Tax imposed on factories involved in the cotton business
• Tax on Farmhouse: A tax on real estate which falls outside the boundaries of property tax
• Tax on luxury House: Imposed on the houses meeting specific requirements of the location and covered area
• Medical Opium: A fee to be paid by anyone running medical opium factory in the province.

E Services by Punjab excise and taxation & narcotics department:

The Excise Taxation and Narcotics Department of Punjab have recently launched e-services in collaboration with PITB (Punjab Information Technology Board). It will be a one-stop online app that will provide different services to the citizens. The application aims to provide convenience to the applicants by allowing contactless services related to many things such as; property tax, vehicle token taxes, transfer of fees & challan, etc.

• The newly launched application will provide the following services to the citizens of Punjab:
• Property Tax payment via application e-payment solutions
• Confirm online about PT-1 & PT-2 forms
• Avail the NADRA E Sahulat services for biometric transfer & verification of vehicle ownership
• Avail the Vehicle Transfer service contactless from home without going to the ET & NC office.
• Avail the benefit of vehicle token tax through e-payment services.
• Participate online in e-auctions for the alluring vehicle registration number.

The one-stop online application aims to provide valuable time for customers, save from the hassle of waiting in offices, stand in queues, and deal with any fraud practices involved in property and vehicle taxation.

Collection of Federal Taxes:

Punjab Excise and Taxation is also responsible for collecting federal taxes, which include Withholding tax (WHT) and Income Tax.

Motor Vehicle registration:

The excise, taxation, and narcotics department of Punjab also oversees the imported and local vehicle registration. The buyer can visit local, regional offices in metro cities like Excise and Taxation Rawalpindi, Excise and Taxation Lahore, or any other regional office in the city.

The department has also created a Motor Transport Information Management System –MTMIS Punjab. You can also visit the Excise and Taxation Punjab vehicle verification page on the website for online vehicle verification.

Dealer Vehicle Registration System:

The system was introduced by the Excise, taxation, and narcotics department of the province under MTMIS to prevent sales of unregistered vehicles in Punjab.

Misc. services:

Other online services offered by the Punjab excise and taxation department include; Online Vehicle Tax check, Online excise duty payment, Appointments for visits, Property Tax Calculator, a System for online verification of property tax, etc.

3. Excise Taxation and Narcotics Department, Khyber Pakhtunkhwa:

Excise Taxation and Narcotics Department of Excise and Taxation KPK are responsible for dealing with matters that include tax, excise duties, and revenue collection. The department is responsible for various functions as a regulatory authority.

Tax Collection:

Excise and Taxation KPK is responsible for collecting taxes under different categories that include:

• Urban immovable real estate taxes: Taxes to be paid by real estate owners in urban areas.
• Vehicle Taxes: The owners of vehicles in the province are liable to pay these taxes to the tax and excise department.
• Professional Tax: The tax is levied on business persons and employees of any company. The taxpayer might need NTN verification for it.
• Tax on Hotels: As clear in the name, the tax is payable by hotel owners and management in the province.
• Vehicle Dealer Tax: The tax is levied on all motor vehicle dealers in the province.

Online vehicle verification:

The excise and taxation KPK is responsible for the online vehicle verification system for the province. You can easily perform an online vehicle tax check by visiting the website. You can also visit the site for an online vehicle registration check calculator.

4. Excise, Taxation, and Narcotics Control Department, Sindh:

Excise, Taxation, and Narcotics Control Department, Sindh or known as excise and taxation Sindh department is primarily responsible for tax collection and narcotics suppression. Let’s look at the roles of the excise and taxation Sindh department. Also read our blog Property tax in Pakistan

Types of tax collection services:

• Property Tax: the tax is payable to all real estate owners. As the largest city in the province, the property owners can easily visit the office of excise and taxation Karachi.
• Professional Tax: Levied on employees and businessmen generating revenue in the province. The tax amount can be checked by visiting the excise and taxation Karachi office or online.
• Tax on Infrastructure: applied on all goods imported by sea or air in the province.
• Vehicle registration fee and Tax: The fee is payable on the sale, transfer, and purchase of a vehicle in the province.
• Hotel Tax: The tax is levied on hotel owners and management.
• Excise Duty: The duty has to be paid on the import of any product which is harmful or sensitive to use.

Online Excise and Taxation Services:

The online excise and taxation Sindh services include:

• Online Management system for Queue
• Online Motor Vehicle Tax Payment and Verification
• Online Professional Tax

5. Excise, Taxation & Anti-Narcotics Department, Baluchistan:

The Excise & Taxation Department of Baluchistan is the primary source for collecting revenue in the province. The department is committed to bringing positive change and improving revenue collection for the provincial and federal governments.

The Excise Department of Baluchistan has taken many steps to improve the taxation system, such as revision in tax laws, personalized books, and automation of motor vehicle registration, rules & corresponding rates. The Excise department of Baluchistan is a pioneer in introducing security-featured number plates in the country.

Let’s briefly look at services provided by the excise and taxation department Baluchistan to facilitate the citizens.

Motor Vehicle Registration:

The department is responsible for the registration of motor vehicles.

Collection of provincial and personal taxes:

The Excise Department is responsible for collecting income tax, wealth tax (on behalf of the federal government), provincial road taxes, etc. Also there is a tax on every property e.g. plots, houses etc. In case of Plots first you need to know about Plot Size Conversions in Pakistan and then calculate the tax.

Entertainment & Misc. Taxes:

The excise department of Baluchistan is responsible for the collection of entertainment tax, cinema tax, professional tax, welfare Cess, etc.

Property Tax:

The department of Excise Baluchistan is responsible for property tax based on the Annual Rental Values (ARV) of real estate.Before knowing the property taxes or investing in any property first get to know about profitable property Investment in Pakistan and then make your decision.

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