FBR issues withholding tax rates on registration of motor vehicles

ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax rates on registration of new motor vehicles effective from July 01, 2019.

The FBR said that motor vehicle registration authorities are required to collect/deduct advance tax on private motor vehicles under Section 231B of Income Tax Ordinance, 2001 at the time of registration of new motor vehicles from persons getting new locally manufactured motor vehicles in their name.

Following are the withholding tax rates for registration of new motor vehicles under Section 231B(1):

Engine capacity Tax Rate Persons not appearing on ATL*
Up to 850CC Rs7,500 Rs15,000
851CC to 1000CC Rs15,000 Rs30,000
1001CC to 1300CC Rs25,000 Rs50,000
1301CC to 1600CC Rs50,000 Rs100,000
1601CC to 1800CC Rs75,000 Rs150,000
1801CC to 2000CC Rs100,000 Rs200,000
2001CC to 2500CC Rs150,000 Rs300,000
2501CC to 3000CC Rs200,000 Rs400,000
Above 3000CC Rs250,000 Rs500,000

 

** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

 

The FBR said that under Section 231B(1A) every leasing company, scheduled bank, investment bank, development finance institution, Modarba (Sharia Compliant or under conventional mode) shall collect four percent of the value of motor vehicles at the time of lease from persons not appearing in the ATL.

 

The FBR said that under Section 231B(2) the motor vehicle registration authority shall collect withholding tax from person transferring the ownership/registration at the time of transfer:

 

Engine capacity Tax Rate Persons not appearing on ATL*
Up to 850CC Rs0 Rs0
851CC to 1000CC Rs5,000 Rs10,000
1001CC to 1300CC Rs7,500 Rs15,000
1301CC to 1600CC Rs12,500 Rs25,000
1601CC to 1800CC Rs18,750 Rs37,500
1801CC to 2000CC Rs25,000 Rs50,000
2001CC to 2500CC Rs37,500 Rs75,000
2501CC to 3000CC Rs50,000 Rs100,000
Above 3000CC Rs62,500 Rs125,000

 

** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

 

The FBR said that under Section 231B(3) every manufacturer of motor vehicle shall collect withholding tax from purchaser at the time of sale of vehicle at the following tax rates:

 

Engine capacity Tax Rate Persons not appearing on ATL*
Up to 850CC Rs7,500 Rs15,000
851CC to 1000CC Rs15,000 Rs30,000
1001CC to 1300CC Rs25,000 Rs50,000
1301CC to 1600CC Rs50,000 Rs100,000
1601CC to 1800CC Rs75,000 Rs150,000
1801CC to 2000CC Rs100,000 Rs200,000
2001CC to 2500CC Rs150,000 Rs300,000
2501CC to 3000CC Rs200,000 Rs400,000
Above 3000CC Rs250,000 Rs500,000

 

** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

Related Posts

FBR issues withholding tax rates for winning prize bonds

FBR issues withholding tax rates for sale, purchase of immovable properties

Withholding Tax Card: Non-ATL to pay up to 30pc tax on profit from bank deposits, saving schemes

Withholding Tax Card: Tax rates on salary income

Withholding Tax Card: non-ATL persons to pay 30pc tax on dividend income

Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

(Visited 780 times, 3 visits today)

Leave a Reply

avatar
100
  Subscribe  
Notify of