The Federal Board of Revenue (FBR) has explained the amendment of Federal Excise Duty (FED) on imported and locally manufactured vehicles.
The explanation came on Wednesday after the Finance Supplementary (Second Amendment) Act, 2019 was put into effect.
The revenue board clarified that after the amendment in the Serial Number of Table 1 of the First Schedule to the FED Act, 2005, the duty of imported motor vehicles of 1800 cc to 3000cc has been increased to 25 percent in proportion to the estimated value of the car.
The FBR has further added a new Serial Number 55A where the rate of federal excise duty has also been enhanced to 30 percent ad valorem on the import of motor cars, SUVs and other motor vehicles of 3000cc or above.
This does not include those vehicles designed for the transport of 10 or more people.
After the amendment, the new federal excise duty on locally manufactured cars, SUVs and other vehicles over 1700CC will pay 10 percent FED to the estimated value of the vehicle.
In a separate move, an amendment in the Income Tax Ordinance has allowed tax filers to claim advance tax adjustment paid on an educational fee.
As per details, the updated Section 2361 of the Tax Ordinance, 2001 allows return filers to claim adjustments on educational fees.
