ISLAMABAD: The government through the mini-budget has doubled the rates of advance income tax on motor vehicles sold prior registration.
The changes have been proposed through the Finance (Supplementary) Bill, 2021 presented before the parliament on Thursday. The enhancing the advance tax rates the tax authorities would generate around Rs500 million as tax revenue.
The Federal Board of Revenue (FBR) collects the advance tax on those motor vehicles which were sold prior registration under sub section (2A) of Section 231B of Income Tax Ordinance, 2001.
According to FBR sources, the advance tax on vehicle registration had been enhanced to discourage on-money (premium). Following are the old and new rates of advance tax:
|S.No.||Engine Capacity||Existing Rates||Proposed Rates|
|1.||Up to 1000cc||Rs. 50,000||Rs.100,000|
|2.||1001cc to 2000cc||Rs. 100,000||Rs.200,000|
|3.||2001cc and above||Rs.200,000||Rs.400,000|
READ MORE: Text of Finance (Supplementary) Bill, 2021