KARACHI: Collection of motor vehicle tax in Pakistan has declined by 9 percent to Rs24.87 billion during first nine months (July – March) 2022-2023 owing to challenging economic conditions hampering the growth in automotive industry.
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New tax rates on car registration from July 01, 2022
KARACHI: The new rates of advance tax on registration of motor cars have been notified through Finance Act, 2022.
According to PwC A. F. Ferguson & Co. the new rates of advance tax on registration of the motor vehicles are as follows:
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Engine Capacity Up to 850cc: old rate Rs. 7,500: new rate Rs. 10,000
Engine Capacity 851cc to 1,000cc: old rate Rs. 15,000: new rate Rs. 20,000
Engine Capacity 1,001cc to 1,300cc: old rate Rs. 25,000: new rate Rs. 25,000
Engine Capacity 1,301cc to 1,600cc: old rate Rs. 50,000: new rate Rs.50,000
Engine Capacity 1,601cc to 1,800cc: old rate Rs. 75,000: new rate Rs. 150,000
READ MORE: Finance Act 2022 revises tax rates for salaried persons
Engine Capacity 1,801cc to 2,000cc: old rate Rs. 100,000: new rate Rs. 200,000
Engine Capacity 2,001cc to 2,500cc: old rate Rs. 150,000: new rate Rs. 300,000
Engine Capacity 2,501cc to 3,000cc: old rate Rs. 200,000: new rate Rs. 400,000
Engine Capacity Above 3,000cc: old rate Rs. 250,000: new rate Rs. 500,000
Where engine capacity is not applicable and value of vehicle is Rs. 5 million or more: old rate Nil: new rate 3 per cent of the import value (as increased by sales tax, customs duty and FED) or invoice value in case of locally manufactured vehicle.
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The Finance Act, 2022 has also imposed advance tax of Rs. 20,000 on transfer of motor vehicles of unspecified engine capacity (e.g. electric vehicles) having value of Rs. 5 million or more. The said rate of Rs. 20,000 shall be reduced by 10 per cent each year from the date of first registration in Pakistan.
For the purposes of tax collection under section 231B, the definition of ‘motor vehicles’ has been amended and now defined to include car, caravan automobiles, jeep, limousine, pickup, sports utility vehicle, trucks, vans, wagon and any other automobile excluding:
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(i) a motor vehicle used for public transportation, carriage of goods and agriculture machinery;
(ii) a rickshaw or a motorcycle rickshaw and
(iii) any other motor vehicle having engine capacity upto 200cc.
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Tax rates on motor vehicles during tax year 2022
The rates of income tax on motor vehicles for tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following are the rates of income tax on motor vehicles shall be applicable during tax year 2022:
Rates of collection of tax under section 234,—
(1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged.
(1A) In the case of goods transport vehicles with laden weight of 8120 kilograms or more, advance tax after a period of ten years from the date of first registration of vehicle in Pakistan shall be collected at the rate of twelve hundred rupees per annum;
(2) In the case of passenger transport vehicles plying for hire with registered seating capacity of—
S.No. Capacity Rs per seat per annum (i) Four or more persons but less than ten persons. 50 (ii) Ten or more persons but less than twenty persons. 100 (iii) Twenty persons or more. 300 (3) In case of other private motor vehicles shall be as set out in the following Table, namely:-
S. No. Engine capacity Tax (1) (2) (3) 1. upto 1000cc Rs. 800 2. 1001cc to 1199cc Rs. 1,500 3. 1200cc to 1299cc Rs. 1,750 4. 1300cc to 1499cc Rs. 2,500 5. 1500cc to 1599cc Rs. 3,750 6. 1600cc to 1999cc Rs. 4,500 7. 2000cc & above Rs. 10,000 (4) where the motor vehicle tax is collected in lump sum,
S. No. Engine capacity Tax (1) (2) (3) 1. upto 1000cc Rs. 10,000 2. 1001cc to 1199cc Rs. 18,000 3. 1200cc to 1299cc Rs. 20,000 4. 1300cc to 1499cc Rs. 30,000 5. 1500cc to 1599cc Rs. 45,000 6. 1600cc to 1999cc Rs. 60,000 7. 2000cc & above Rs. 120,000 (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Tax rates on passenger, goods transport vehicles
Tax rates on passenger, goods transport vehicles have been revised by the Federal Board of Revenue (FBR) to rationalize applicable rates.
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Withholding tax rates on transfer of motor car ownership
The Federal Board of Revenue (FBR) in Pakistan has announced the revised rates of withholding tax applicable to the transfer of registration or ownership of motor vehicles for the fiscal year 2021/2022.
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Tax rates on car registration for 2021-2022
The Federal Board of Revenue (FBR) has issued revised rates for advance tax on the registration or transfer of motor car.
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Motor vehicle tax collection grows by 22.7pc; finance ministry issues nine-month statistics
ISLAMABAD: The collection of motor vehicle tax has been increased by 22.7 percent owing to better economic conditions during the current fiscal year as compared with unfavorable conditions in the last fiscal year due to corona pandemic.
According to statistics released by the ministry of finance for the period July – March 2020/2021, the collection of motor vehicle tax increased to Rs20.53 billion during the first nine months of the current fiscal year as compared with Rs16.73 billion in the same months of the last fiscal year.
The economic conditions were not encouraging at the start of the last fiscal year and later the coronavirus related lockdown adversely impacted commercial and financial activities.
The provinces have jurisdiction over the collection of motor vehicle tax.
The province wise collection revealed that the Punjab had posted 15.18 percent increase in motor vehicle tax collection during the period under review. The province collected Rs11 billion during July – March 2020/2021 as compared with Rs9.55 billion in the corresponding period of the last fiscal year.
The province of Sindh collected Rs7.55 billion during July – March 2020/2021 as compared with Rs5.52 billion during the corresponding period of the last fiscal year, showing an increase of 36.27 percent.
Khyber Pakhtunkhwa registered an increase of 9.65 percent to Rs1.25 billion during first nine months of the current fiscal year as compared with Rs1.14 billion, showing an increase of 9.65 percent.
The province of Balochistan posted the highest growth of 43.13 percent to Rs0.73 million during July – March 2020/2021 as compared with Rs0.51 million in the same period of the last fiscal year.
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Motor vehicle tax collection grows by 15pc to Rs12.7 billion in 1HFY21
ISLAMABAD: The collection of motor vehicle tax has increased by 15 percent to Rs12.7 billion during the first half (July – December) of 2020/2021 owing to improved business and commercial activities after ease in coronavirus lockdown.
According to official statistics made available on Saturday, the motor vehicle tax collected by all the provinces increased to Rs12.7 billion during the first half of the current fiscal year as compared with Rs11 billion in the corresponding half of the last fiscal year.
Province wise collection data revealed that Punjab had contributed the major chunk under this head. The Punjab province collected Rs7.08 billion as motor vehicle tax during first half of the current fiscal year as compared with Rs6.52 billion in the corresponding half of the last fiscal year.
In terms of growth, the Sindh province registered an increase of 28.48 percent to Rs4.28 billion during the period of July – December of the current fiscal year as compared with Rs3.33 billion during the same period of the last fiscal year.
The collection of motor vehicle tax by the province of Khyber Pakhtunkhwa registered an increase of 2.24 percent to Rs865 million during the first half of the current fiscal year as compared with Rs846 million in the corresponding half of the last fiscal year.
The Balochistan province collected Rs413 million as motor vehicle tax during July – December 2020/2021 as compared with Rs303 million in the same period of the last fiscal year.
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Punjab announces tax payment relaxation to property, motor vehicle
LAHORE: The Punjab government has announce special relaxation on payment of tax for immovable properties and motor vehicle for financial year 2020/2021.
According to Punjab Finance Bill, 2020 following special relaxations have been offered for tax payment of immovable properties and motor vehicles:
Special relaxations for financial year 2020-21.
(1) Notwithstanding anything contained in sections 3 and 12 of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958), for the financial year 2020-21:
(a) discount equal to five percent of the tax being paid shall be allowed on payment of tax through e-payment system;
(b) a rebate equal to ten per cent of the amount of annual tax shall be allowed if the amount of annual tax is paid in lump sum on or before the 30th day of September 2020;
(c) the tax shall be paid on yearly basis or half yearly basis as the assessee may choose or by such later day as the Government may by notification determine; and
(d) the late payment surcharge shall not be imposed for the tax amount due.
(2) Notwithstanding anything contained in sections 3 and 9 of the Punjab Motor Vehicles Taxation Act, 1958 (XXXII of 1958), for the financial year 2020-21:
(a) discount equal to five percent of the tax being paid shall be allowed on payment of tax through e-payment system;
(b) a rebate equal to 20 percent of the amount of annual tax shall be allowed if the amount of annual tax is paid in lump sum on or before the 30th day of September 2020; and
(c) if a person fails to pay any amount of tax due within the period fixed for such payment, he shall not be liable to pay any penalty if he pays the same during the financial year 2020-21.
(3) This section shall remain in force till 30th day of June 2021.
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Motor vehicle tax collection plummets by 15 percent to Rs16.73 billion
ISLAMABAD: The collection of motor vehicle tax has registered 15 percent decline during first nine months of current fiscal year, according to data released by the ministry of finance.
According to fiscal operation for first nine months issued by the finance ministry showed that the provinces had collected Rs16.73 billion during July – March 2019/2020 as compared with R19.64 billion in the corresponding period of the last fiscal year.
The provinces have mandate to collect motor vehicle tax.
The lower collection of motor vehicle tax attributed to slowdown in economy and the cases of coronavirus started appearing in the month of March 2020, which resulted in lockdown.
The major slump in collection recorded by the Punjab province, which posted 19.5 percent decline to Rs9.55 billion during first nine months of current fiscal year as compared with Rs11.87 billion in the same period of the last fiscal year.
The Sindh province posted 4 percent decline to Rs5.52 billion during July – March 2019/2020 as compared with Rs5.75 billion collected in the corresponding period of the last fiscal year.
The collection of motor vehicle tax by Khyber Pakhtunkhwa registered 18 percent decline to Rs1.14 billion during first nine months of the current fiscal year as compared with Rs1.39 billion collected in the same period of the last fiscal year.
The province of Balochistan collected Rs515 million during first nine months of current fiscal year as compared with Rs615 million in the same months of the last fiscal year, showing decline of 16 percent.