Saturday, 20 July 2024

Govt imposing additional taxes on cars from next week

It was learned on Friday that the government is considering issuing a tax amendment ordinance next week.

Sources said that the Federal Board of Revenue (FBR) had proposed a one per cent tax exemption for locally manufactured electric cars and a rebate of three per cent additional sales tax on imports of electric vehicles. Similarly, the ordinance proposes an exemption of one per cent additional customs duty on spare parts for electric vehicles.

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Under the ordinance, an additional tax of Rs 0.2 million will be levied on the purchase of new vehicles. However, sources said legislation was needed to impose additional withholding tax on cars. In addition, the federal cabinet has already given the green signal to impose additional taxes on vehicles.

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Sources further revealed that if a person sells his new car within three months of buying it, new taxes will be levied. Proposed additional taxes on sale of cars within the time frame will increase tax revenue collections.

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An additional tax of up to Rs 50,000 will be levied on vehicles of up to 1,000 cc, Sources said. Similarly, an additional withholding tax of Rs0.1 million will be levied on cars between 1,000 cc and 2,000 cc. Similarly, an additional withholding tax of Rs0.2 million would be levied on cars over 2,000cc. The additional withholding tax will remain in force till June 30, 2021.

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Source | FBR | Federal Board of Revenue | Electric Cars | Cars | Duties & Taxes | Withholding Taxes |

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