The Federal Board of Revenue (FBR) has decided to reduce taxes on public transport vehicles to relieve travelers and service operators.
According to details, advance tax on non-air conditioned (AC) vehicles with 4 to 10 seats has been reduced from Rs. 500 to Rs. 200 per seat, while that on AC vehicles with up to 10 seats has been reduced from Rs. 1,000 to Rs. 375 per seat.
Similarly, the advance tax on non-AC vehicles with up to 20 seats has been reduced from Rs. 1,500 to Rs. 500 per seat, while that on a 20-seater AC vehicle has been reduced from Rs. 2,000 to Rs. 750.
Likewise, advance tax on non-AC vehicles with more than 20 seats has been reduced from Rs. 2,500 to Rs. 1,000, while that on an AC bus with similar capacity has been reduced from Rs. 4,000 to Rs. 1,500.
An official document available with ProPakistani states:
Passenger transport vehicles, goods transport vehicles, and vehicles of foreign diplomats and foreign diplomatic missions have been exempted from levy of Capital Value Tax.
Last month, public transporters across Pakistan announced a nationwide strike against tax rates and fuel price hikes. Pakistan Public Transport Election Committee (PPTEC) representative Haji Saeed Jan told the government to fulfill the committee’s demands in August.
He denounced the unjust increase of income tax and token tax on vehicles, calling the hike illegal. He also demanded that the government reduce diesel prices and reduce taxes, adding that the exorbitant rates have made it difficult for operators to keep their businesses afloat.
The significant tax relief should prompt fare rate reduction as well, however, there are no reports in that regard at this time.
