KARACHI: Federal Board of Revenue (FBR) has issued updated withholding tax rates on purchase and registration of motor vehicles.
The withholding tax rates have been updated through Finance Supplementary (Second Amendment) Act, 2019 as on March 09, 2019.
The withholding tax rate on registration of motor vehicle to be collected by excise and taxation department of provincial government under Sub-Section 1 of Section 231B of Income Tax Ordinance, 2001:
| Registration of Motor Vehicle | Filer | Non-Filer |
| Up to 850CC | Rs7,500 | Rs15,000 |
| 851CC to 1000CC | Rs15,000 | Rs37,500 |
| 1001CC to 1300CC | Rs25,000 | Rs60,000 |
| 1301CC to 1600CC | Rs50,000 | Rs150,000 |
| 1601CC to 1800CC | Rs75,000 | Rs225,000 |
| 1801CC to 2000CC | Rs100,000 | Rs300,000 |
| 2001CC to 2500CC | Rs150,000 | Rs450,000 |
| 2501CC to 3000CC | Rs200,000 | Rs600,000 |
| Above 3000CC | Rs250,000 | Rs675,000 |
Every leasing company or a scheduled bank or a non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a non-filer, either through ijara or otherwise, shall collect advance tax at the rate of four per cent of the value of the motor vehicle under Sub-Section 1A of Section 231B of Income Tax Ordinance.
Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the following rates under Sub-Section 2 Section 231B of Income Tax Ordinance, 2001:
| Engine Capacity | Tax for Filer | Tax for Non-Filer |
| Up to 850CC | Rs 0 | Rs5,000 |
| 851CC to 1000CC | Rs5,000 | Rs15,000 |
| 1001CC to 1300CC | Rs7,500 | Rs25,000 |
| 1301CC to 1600CC | Rs12,500 | Rs65,000 |
| 1601CC to 1800CC | Rs18,750 | Rs100,000 |
| 1801CC to 2000CC | Rs25,000 | Rs135,000 |
| 2001CC to 2500CC | Rs37,500 | Rs200,000 |
| 2501CC to 3000CC | Rs50,000 | Rs270,000 |
| Above 3000CC | Rs62,500 | Rs300,000 |
Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicle after five year from the date of first registration in Pakistan.
Every manufacturer of a motor vehicle shall collect, at the time of sale of a motor car or jeep, advance tax at the following rates under Sub-Section 3 of Section 231B of Income Tax Ordinance, 2001 from the person to whom such sale is made:
| Engine Capacity | Tax for Filer | Tax for Non-filer |
| Up to 850CC | Rs7,500 | Rs15,000 |
| 851CC to 1000CC | Rs15,000 | Rs37,500 |
| 1001CC to 1300CC | Rs25,000 | Rs60,000 |
| 1301CC to 1600CC | Rs50,000 | Rs150,000 |
| 1601CC to 1800CC | Rs75,000 | Rs225,000 |
| 1801CC to 2000CC | Rs100,000 | Rs300,000 |
| 2001CC to 2500CC | Rs150,000 | Rs450,000 |
| 2501CC to 3000CC | Rs200,000 | Rs600,000 |
| Above 3000CC | Rs250,000 | Rs675,000 |
