Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

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

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