Govt to Impose WHT of Rs. 200,000 on Sale of Newly-Bought Vehicles

The Economic Coordination Committee (ECC) recently approved the imposition of additional withholding tax (WHT) on the sale of newly-bought vehicles. The tax amount ranges from Rs. 50,000 to Rs. 200,000 and it will be imposed at the first registration of a new vehicle in the name of the second buyer.

The decision was given the go-ahead after the submission of a summary by the Ministry of Industries and Production. Reportedly, the purpose of the tax is to discourage the car dealerships that were involved in charging hefty illegal premiums on the original manufacturers’ suggested retail prices (MSRP) of the vehicles.


MG Motors to Launch Two More Cars in Pakistan

The ECC has approved the imposition of Rs. 50,000 WHT on 1000 cc or less cars, Rs. 100,000 WHT on 1,000 cc to 2,000 cc cars, and Rs. 200,000 WHT on vehicles with an engine displacement of more than 2,000 cc. The additional WHT will be charged to people who buy locally assembled cars from automakers and sell them within three months of delivery.

The WHT has reportedly been made applicable until June 2020 and will be made mandatory for the long term following an amendment in the Income Tax Ordinance. However, this decision is subject to clearance by the federal cabinet.

  • It looks good but will probably not work. Because the first car buyer will add the new WHT amount to the OWN money. The second buyer will still pay because they will get the car “Forun”. So, if OWN money was 2 lac now it will be 4 lac etc.

    • nopes, that’ not how it works buddy. The second buyer have to pay it at the time of shifting the vehicle to his name not to the x-owner of the vehicle.

      • doesn’t matter to whom the 2nd buyer pays… the 1st buyer can simply say I need my OWN apart from this additional tax…. still I m hopeful,keeping fingers crossed, that this will discourage this OWN mafia.. and may genuine buyers become more sensible n not bcome hasty in getting car…

  • close