In the budget for the next fiscal year, the federal government has increased the income and withholding tax by 600% on vehicle registration and vehicle ownership transfer levied on top of the token tax.
The former ‘one-time’ taxes have also been changed by the government to annual taxes and as a result, vehicle owners will have to have to pay an additional PKR 3,000 to PKR 200,000 for filers and PKR 6,000 to 400,000 for non-filers annually.
The Punjab Excise and Taxation Department is left dumbfounded by the impracticality of the tax structure and has asked for written clarification from the Federal Board of Revenue (FBR), suspecting an unintentional error in the finance bill.
According to media reports, the Excise and Taxation Department officials are concerned about the substantial increase in taxes.
Local car manufacturers collect a one-time withholding tax from the customers and write the information on their sales invoices but now, under the schedule 231 of the finance bill pages 154 and 155, it has been fixed annually on a per seat basis.
The complete list of withholding tax on the registration and transfer of vehicles is given below:
| Withholding Tax Per Seat | ||
| Category of Vehicles | Filer | Non-Filer |
| 851CC-1000CC | PKR 5,000 | PKR 10,000 |
| 1001CC-1300CC | PKR 7,500 | PKR 15,000 |
| 1301CC-1600CC | PKR 12,500 | PKR 25,000 |
| 1601CC-1800CC | PKR 18,500 | PKR 37,000 |
| 1801CC-2000CC | PKR 25,000 | PKR 50,000 |
| 2001CC-2500CC | PKR 37,500 | PKR 75,000 |
| 2501CC-3000CC | PKR 50,000 | PKR 100,000 |
| 3001CC and above | PKR 62,500 | PKR 125,000 |
As the above-mentioned table shows the value of tax per seat, we have calculated the total tax for each category for a 4-seater car which is as follows:
| Withholding Tax on Four-Seater Car | ||
| Category of Vehicles | Filer | Non-Filer |
| 851CC-1000CC | PKR 20,000 | PKR 40,000 |
| 1001CC-1300CC | PKR 30,000 | PKR 60,000 |
| 1301CC-1600CC | PKR 50,000 | PKR 100,000 |
| 1601CC-1800CC | PKR 74,000 | PKR 148,000 |
| 1801CC-2000CC | PKR 100,000 | PKR 200,000 |
| 2001CC-2500CC | PKR 150,000 | PKR 300,000 |
| 2501CC-3000CC | PKR 200,000 | PKR 400,000 |
| 3001CC and above | PKR 250,000 | PKR 500,0000 |
The government also wants to impose an income tax along with the annual token tax of the cars and the rate can be seen below:
| Income Tax on Annual Token Tax | ||
| Category of Vehicles | Filer | Non-Filer |
| 1001CC-1100CC | PKR 1,500 | PKR 3,000 |
| 2000CC and above | PKR 10,000 | PKR 20,000 |
There might be an unintentional error while preparing the finance bill according to the officials at the Excise and Taxation Department because the information provided in the bill is impractical and will be rejected by the public.
Although, if this information is correct, the officials added that they will start the collection from 1st July under the new rate and the department has upgraded its software to accommodate the changes.
Via Geo News
Are the dum b or what 75,000 annually are they that r e t a r d e d
Now, there is no doubt!
Good : Jo Million Rupee Ki Car Le Sakta hai Wo Itna Pay Bhi Kar Sakta hai :
#BikeLovers
Tum Kisi Chirrya Ghar Kay Bander Lagtay Ho..
Please care to read the article. Its most probably a clerical error
The BRT bus transport should be encouraged with incentives for the Government Officials, Secretaries, Ministers, should travel in the bus. Why because cost concious, quick, tax free, no toll charges for buses in peak traffic times. Cars, motor cycles should bear heavy tax charges, heavy toll charges during peak times on main roads to avoid congestion. Ambulance, fire brigade, police, law enforcement agencies, buses, school buses, will pay no toll charges during peak times. Just a suggestion for considration, to avoid congestion.
What happened to peshawar BRT? Dont ssk anything from them they will leave the mess of everything and call it by fancy names, everyone is suffering already
This will happened,
When the dumb people run the Govt.
these tax income tax if you are not theif then you become a filer then you can get this money so withholding will become zero
I had gone to register my car today at ETO ISBD. At 1:00pm, the software stopped working then the closed the counters and ETO himself came with his staf f and said:
1. Taxes are being lowered by the govt. There is an error in software.
2. If you pay higher taxes for reg/transfer we cna not refund it as the money goes directly to FBR
3. Come back after 7 days as there is a lot of time token tax and registration guys should wait if they dont want to pay incorrect higher taxes for reg/transfer
Hope so
Asa hi ho…
Wrna i think wo tax bharny ka wait kr rahy hain…ky bhar jain thn ap jain…
these taxes are income tax if you are not theif then you become a filer then you can get this money so withholding tax will become zero
Withholding will not become zero for a filer. And advance tax never gets refunded in practice and just keeps on piling in the bank accounts of the government. Get out of this youthia mentality that everyone except yourself is a thief…
Imran says he achived his target which was to arrest zardari and Nawaz. Economy is not his issue
Aur Lo Tabdeeli Kay Mazay…
true but meri samajh main yeh nhi aa raha k nawaz aur zardari ko sirf jail main rakhnay se kya hasil in logon se loota hua maal nikalwao ta k gareeb awaam per itna bojh na paray.
Gov should ponder before imposing such bulk taxes….
That through these taxes at which point gov is giving relieve to public…
Before coming in gov they claim so many promises…but now zero execution…
This is not acceptable lagta hi mehran he roads pa ho ge Wo b dus dus lakh ke ho jain ge
9 ki tou abi be ho he chuki hai bhai jaan….
yar koi bhai bata sakta hai k mehran ka kitna token hai (for filer) ?
This is fake report clarification have already been given I do not know why people are spreading it again go improve your knowledge admin
Does any categorization of this Tax on Motor Car, means ‘Year of manufacturing’ impact?