The Federal Board of Revenue (FBR) has announced an increase in vehicle transfer fee for income tax filers, whereas a certain amount of transfer fee will be waived off for those who have filed their tax returns for the fiscal year 2017-18.
FBR is aiming to tighten its grip on tax evaders who haven’t filed their tax returns this year.
Vehicle Transfer Fees
The transfer fee differs for different cars and for the tax payers and non-payers.
- Cars with engines up to 850CC – Free (filer), Rs 5,000 (non-filer)
- Cars with engines between 851CC to 1,000CC – Rs 5,000 (filer), Rs 15,000 (non-filer)
- Cars with engines between 1,001CC to 1,300CC – Rs 7,500 (filer), Rs 25,000 (non-filer)
- Cars with engines between 1,301CC to 1,600CC – Rs 12,500 (filer), Rs 65,000 (non-filer)
- Cars with engines between 1,601CC to 1,800CC – Rs 18,750 (filer), Rs 100,000 (non-filer)
- Cars with engines between 1,801CC to 2,000CC – Rs 25,000 (filer), Rs 135,000 (non-filer)
- Cars with engines between 2,001CC to 2,500CC – Rs 37,500 (filer), Rs 200,000 (non-filer)
- Cars with engines between 2,501CC to 3,000CC – Rs 50,000 (filer), Rs 270,000 (non-filer)
- Cars with engines above 3,000CC – Rs 62,500 (filer), Rs 300,000 (non-filer)
Engine Capacities and Transfer Fees
The transfer fee waiver increases with increasing engine capacity, meaning that on a 1300 cc vehicle, the fee would be Rs. 25000 and Rs. 7500 for non-filers and tax-filers, respectively.
On the other hand, cars with lower engine capacities like 800cc can be transferred free if the buyer is a filer.
The decision to waive off the transfer fee is welcoming for those who have paid their dues as per the law, and worrisome for those who have yet to file them.
The move is expected to increase revenues for FBR as the election year draws near.