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Tag: motor vehicle

  • Tax rates on unregistered new cars during 2021-2022

    Tax rates on unregistered new cars during 2021-2022

    In order to stop the ‘on money’ phenomenon, the government has slapped withholding tax on unregistered new motor cars or cars sold prior to first registration.

    Through the Finance Act, 2021 the tax rates have been imposed for the year 2021/2022 and onwards. Initially, these rates were imposed through the Tax Laws (Amendment) Ordinance, 2021 for a period of 90 days.

    The  Federal Board of Revenue (FBR) collects the withholding tax under Section 231B (2A) of the Income Tax Ordinance, 2001.

    Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.

    The provincial excise and taxation authorities collect tax on behalf of the FBR from persons getting new locally manufactured motor vehicles transferred in their name at the time of registration of the new motor vehicles.

    WITHHOLDING TAX CARD 2021/2022

    Following are the rates of withholding tax:

    01. Car engine capacity up to 1000CC: the tax rate shall be 50,000; and in case the person is not on the Active Taxpayers List (ATL) the tax shall be Rs100,000.

    02. Car engine capacity between 1001CC to 2000CC: the tax rate shall be Rs100,000; and in case the person is not on the ATL the rate shall be Rs200,000

    03. Car engine capacity with 2001 and above: the tax rate shall be Rs200,000; and in case the person is not on the ATL the rate shall be Rs400,000

    The tax collected/deducted shall be adjustable against the tax liability of the person.

  • Advance tax rates on motor car purchase, registration

    Advance tax rates on motor car purchase, registration

    The advance tax rates on motor vehicle registration and purchase from manufactures for year 2021/2022 shall be:–

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  • Highlights of relief in duty, taxes for import, local supply of cars

    Highlights of relief in duty, taxes for import, local supply of cars

    KARACHI: The government has proposed relief in duty and taxes on import and local supply of motor cars up to 850CC in order to enable lower income group to purchase the motor vehicles.

    According to a commentary on budget 2021/2022 issued by KPMG Taseer Hadi & Co. Chartered Accountants, in recent years, the prices of automobiles in Pakistan have seen a sharp rise due to multiple factors, making them unaffordable for common man.

    The Finance Bill 2021 proposes to rationalize the tariff structure of the automobile sector in order to address this matter in the following manner:

    For motor vehicles up to 850cc, the Bill proposes to abolish import taxes including minimum value addition tax. In the case of locally manufactured vehicles with engine capacity upto 850cc, the Bill proposes to reduce sales tax from 17 percent to 12.5 percent and abolish federal excise duty.

    In case of local supply of locally manufactured Electric Vehicles (EV) i.e., small cars or SUVs with battery capacity up to 50 kwh and Light Commercial Vehicles(LCV)with battery capacity up to 150 kwh, the Finance Bill 2021 proposes to levy sales tax at reduced rate of 1 percent whereas import of the same is excluded from minimum value addition tax with 25 percent reduction in custom duty till 30.06.2026.

    However, import of CKD kits for these EVs is proposed to be taxed at reduced customs duty rate of 1 percent with exemption / exclusion from chargeability of sales taxand minimum value addition tax.

    In addition, the Bill proposes to reduce sales tax on Hybrid Electric cars with capacity up to 1800 cc to 8.5 percent.

    The Bill further proposes to reduce levy of minimum tax on turnover from 1.5 percent to 0.25 percent in case of persons engaged in sale and purchase of used vehicles while also abolishing withholding of income tax on purchase of used vehicles from general public.

    However, the collection of advance tax is proposed to be made from the original purchaser who sells it without registration, at the rates ranging from Rs. 50,000 to Rs. 200,000.

  • MCC Peshawar auctions motor vehicles on May 19-20

    MCC Peshawar auctions motor vehicles on May 19-20

    ISLAMABAD: Model Customs Collectorate (MCC) Peshawar has announced to conduct public auction of motor vehicles at various customs stations on May 19 and May 20, 2021.

    Following are the details of motor vehicles and location of auction:

    STATE WARE HOUSE, PESHAWAR

    01. Mercedes Benz (Bullet Proof) Model 1982, chassis No. WDB-12603312037551

    02. Mitsubishi Pajero Station Wagon Jeep (4X4) Model 1999, Chassis No. JMYHNV360YJ000822

    03. Mitsubishi Pajero Model 1999 (As per Website), Chassis No. JMYHNV360YJ000823

    04. Toyota Land Cruiser Model 1989 (As per Website), Chassis No. LJ70-0005716

    STATE WARE HOUSE, ABBOTTABAD

    01. Toyota Hilux Surf Model 1993 (As per Website), chassis No. KZN130-9007320

    STATE WARE HOUSE, FRONTIER CORPS

    01. Daewoo Car Model 1992, Chassis No. KLATF19TINB-522281

    02. Mark-1 Motor Car Model Nil, Chassis No. LA3VS-216474

    03. Motor Car  Model 1978, Chassis No. M-430-300918

    04. Toyota Corolla Car Model 1982, Chassis No. A171-A-8024009

  • MCC Gwadar announces auction of motor vehicles on April 21

    MCC Gwadar announces auction of motor vehicles on April 21

    KARACHI: Model Customs Collectorate (MCC) Gwadar has announced auction of confiscated motor vehicles on April 21, 2021 to be held at Custom House, Gaddani.

    Following motor vehicles will be presented for the auction:

    01. Toyota Premio X Car, Reg: No AAK-046, Chassis No. ZZT240-0112894, Engine No. Nil, Model: 2006

    02. Toyota Surf, Reg No. QBA-0162, Chassis No. KZN185-0043878, Engine No. 1KZ-TE2982, Model: 1997

    03. Toyota Land Cruiser, Reg No. BC-0448, Chassis No. HJ61-002060, Engine No. Nil, Model: 1986

    04. Hino Bus, Reg No. BSB-808, Chassis No. AK1JRKA-16027, Engine JO8CB16832, Model:2012

    05. Coach, Reg No. BSA-515, Chassis No. AK1JMKA-1415, Engine No. Nil, Model: Nil

    06. Toyota Land Cruiser (Red), Reg No. BA-8164, Chassis No. BJ160-009711, Engine No. Not Traceable, Model: 1985

    07. Indus Corolla Car, Reg No. GF-1411, Chassis No. AE100-0028693, Engine No. Not Traceable, Model: 1994

    08. Land Cruiser Prado, Reg No. Not Traceble, Chassis No. LJ78-0002499, Model. 1990

    09. Toyota Land Cruiser, Reg No.BA-5186, Chassis No. HJ60-009651, Model. 1984

    10. Toyota Land Cruiser, Reg: JAA-889, Ch# BJ-60-020679, Model: 1988

    11. Mitsubishi Pajero, Reg: JAL-231, Ch# LO48G-3005856, Model: 1985

    12. Land Cruiser, Reg: QAB-1649, Ch# HJ61-013994, Model:1989

    13. Toyota Jeep Land Cruiser, Reg: AFR-2015, Ch: FJ40-371932, Model: 1989

    14. Toyota Land Cruiser, Reg: Nil, Ch:# LJ78-0039971, Eng:# ZL-33868, Model: 1993

    15. Honda Civic Car, Reg: Nil, Ch:# ESI-1600827, Eng:#D1610173-004871, Model: 2002

    16. BMW, Reg: Nil, Ch:# WBAGL62090DJ92594, Eng:#CC-300, Model: 2002

    17. Toyota Surf, Reg: Nil, Ch:# KZN130-9032504, Eng:#Not Traceable, Model: 1993

    18. Toyota Land Cruiser, Reg No. LSA-3469, Chassis No.FJ55-88824, Engine No. Nil, Model: 1992

    19. Hino Bus, Reg No. CH-14538, Chassis No. AK8JRKA-14538, Engine No. Nil, Model: 2016

    20. Hino Bus, Reg No. BSA-554, Chassis No. AK1JRKA-11056, Engine No. Nil, Model: Nil

    21. Hino Bus, Reg No. JB-3335, Chassis No. AK8JRKA-15635, Engine No., Model: 2012

    22. Hino Bus, Reg No. BSA-327, Chassis No. AK17X-41808, Engine No., Model: 1992

    23. Hino Bus, Reg No. BSA-571, Chassis No. AK-I-JRKA-16707, Engine No. Nil, Model: 2011

    24. Toyota Land Cruiser, Reg No. QBA-3037, Chassis No. FZ180-016013, Model Nil

    25. Zamyad Irani Pick Up, Reg: No WAJ-718, Chassis No. NAZPL140TB-P340284, Engine No. Nil, Model: Nil

    26. Nissan Sunny Car, Reg No. Nil, Chassis No. JN1BDAB14Z0336115, Engine No. GMI-6080565, Model: Nil

    27. Toyota Hilux Surf Jeep, Reg No. BF-3414, Chassis No. RZN185-9024668, Engine No. 3RZ-FE, Model: 2000

    28. Honda Accord, Reg No. AVP-786, Chassis No. CL7-3003313, Engine No. N/A, Model: Nil

    29. Toyota Altis Car, Reg No. AZR-182, Chassis No. ZZE142-7403917, Engine No. N/T, Model: N/T

    30. Hyundai Shehzore, Reg No.KH-4410, Chassis No. AUDF101061, Engine No. N/T, Model: N/T

    31. Mitsubmishi Pejero, Reg No.KB-1782, Chassis No. CL048VFY100117, Engine No. N/T, Model: N/T

    32. Toyota Probox, Reg No.Nil, Chassis No. NLP51-0006233, Engine No. INZ-TV014556, Model: 2004

    33. Toyota Raum car, Reg No.AHK-605, Chassis No. NCZ 20-00962014, Engine No. INZFE-0097850, Model: Nil

    34. Mitsubishi Pejero, Reg No. Nil, Chassis No. V45-4401374, Engine No. 2L2678454, Model: 1998

    35. Mitsubishi Pejero, Reg No.JAB-248, Chassis No. LJ78-00151955, Engine No. –TE, Model: Nil

    36. Mitsubishi Pejero (03 Door), Reg No.LSC-5465, Chassis No. V24-7700536, Engine No. 4D56-T7UF, Model: Nil

    37. Toyota Land Cruiser, Reg No.BD-4472, Chassis No. FZJ80-0022240, Engine No. N/T, Model:1992

    38. Toyota Land Cruiser, Reg No.BF-7385, Chassis No. HZJ80-0011965, Engine No. N/T, Model: Nil

    39. Toyota Land Cruiser, Reg No. Nil, Chassis No. LENFN28FX95300066, Engine No. 312684, Model: Nil

    40. Toyota Land Cruiser Prado, Reg No.JAF-883, Chassis No. IZJ78-0027017, Engine No.1KZIT, Model:1996

    41. Toyota Hilux Pickup, Reg No.WAE-893, Chassis No. RN43-008601, Engine No. Nil, Model: Nil

    42. Toyota Land Cruiser, Reg No.JAA-038, Chassis No. HJ61-006515, Engine No.1158881, Model:1987

    43. Toyota Land Cruiser, Reg No.JAA-195, Chassis No. LJ71-0003920, Engine No.2L-1651949, Model: Nil

    44. Hyundai Shehzore, Reg No.KN-9544, Chassis No. AUDF-128515, Engine No. Nil, Model:Nil

    45. Pejero, Reg No.JAA-983, Chassis No. CL0048VGJ400698, Engine No. Nil, Model: Nil

    46. Shahzor, Reg No.KP-6463, Chassis No. PHFGNSMXR7D138191, Engine No.D4BB6404789, Model:2007

    47. Toyota Land Cruiser, Reg No.JAC-265, Chassis No. KZJ78-0001358, Engine No.1KZ-TE-0005609, Model: Nil

    48. Toyota Prado, Reg No.BF-6548, Chassis No. VZJ121-0007375, Engine No.5VZ-FE3378, Model:2003

    49. Toyota Land Cruiser, Reg No.JAD-117, Chassis No. FZ-J80-0163691, Engine No. Nil, Model: Nil

    50. Hino Mazda Truck, Reg No. JW-1236, Chassis No. AK176KA-43256, Engine No. 12181, Model: 1992

    51. Toyota XLI Car, Reg No. GP-0896, Chassis No. NZE170R-4048738, Engine No. Z333007 (2ZN-FE), Model: 2015  

  • Withholding tax up to Rs200,000 imposed on sale of new car within 90 days

    Withholding tax up to Rs200,000 imposed on sale of new car within 90 days

    ISLAMABAD: The Federal Board of Revenue (FBR) has imposed up to Rs200,000 as withholding tax on sale of motor cars within 90 days of first registration, sources said on Monday.

    The withholding tax has been imposed till June 30, 2021. The revenue generation measure has been taken in order to discourage the trend of ‘on money’.

    Following withholding income tax rates have been imposed on motor vehicles:

    01. Tax rate at Rs50,000 has been imposed on sale of up to 1000CC motor vehicles.

    02. Tax rate at Rs100,000 has been imposed on sale of motor vehicles between 1000CC and 2000CC.

    03. Tax rate up to Rs200,000 has been imposed on motor vehicles with engine capacity of 2000CC and above.

    In order to apply the rates an amendment to Section 231B of Income Tax Ordinance, 2001 has been made.

    Following is the text of the amendment:

    “Every motor vehicle registration authority of Excise and Taxation Department shall collect advance tax from the buyers of locally manufactured motor vehicles who subsequently sell it within ninety days of delivery of such vehicle whether prior to or after registration.”

    The FBR said that no collection of the withholding tax under the new amendment would be made after June 30, 2021.

  • Tax collection from motor vehicle registration surges by 62 percent in 1HFY21

    Tax collection from motor vehicle registration surges by 62 percent in 1HFY21

    KARACHI: The collection of advance tax from the registration of new motor vehicles recorded a remarkable growth of 62 percent during the first half (July–December) of the current fiscal year (1HFY21), reflecting a rebound in economic activity and renewed demand in the automobile sector.

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  • Pakistan Customs announces auction of huge lot of motor vehicles on Jan 14

    Pakistan Customs announces auction of huge lot of motor vehicles on Jan 14

    ISLAMABAD: Pakistan Customs has announced auction of huge lot of seized motor vehicles on January 14, 2021 at Customs House Airport road, Quetta.

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  • Inland Revenue examines persons buying motor vehicles through customs auction

    Inland Revenue examines persons buying motor vehicles through customs auction

    KARACHI: The office of Inland Revenue (IR) of Federal Board of Revenue (FBR) has launched examination of persons who purchased large number of vehicles through customs auctions.

    Sources in IR said on Monday that the probe had been initiated on the directives of the Federal Tax Ombudsman (FTO) regarding some bidders were frequently indulged in participating in bidding and buying large number of vehicles.

    The FTO in a case of stuck up motor vehicles at ports, which were brought into Pakistan through personal baggage, transfer of residence or under gift schemes in violation of SRO 52(I)/2019 dated January 15, 2019 issued by the ministry of commerce.

    As per details till November 25, 2020 the number of stuck up vehicles were 587 at the MCC East and West. Around 167 vehicles were auctioned till the date under review.

    During the investigation of the case the FTO was told that a small number of so-call professional bidders purchased large number of vehicles regularly and then sell the same on huge profit in the open market.

    “One of the reasons of purchase of vehicles by these bidders is that many interested persons from the general public either do not possess NTN or they don’t want to bring their names on record due to various reasons including subsequent taxation, hence, they prefer to purchase goods or vehicles through these bidders,” the FTO was informed.

    The FTO was further informed that 62 bidders had purchased 167 vehicles auctioned during the period from July to November 2020, which 20 bidders purchased 117 vehicles.

    The sources said that the FTO was told that an e-auction was to be introduced by the FBR and in this regard SRO 1174(I)/2020 dated October 26, 2020 was already issued.

    However, date for implementation of e-auction rules would not be notified by the FBR later on as the e-auction module is still under development.

    Customs authorities assured the FTO stating that after implementation of e-auction, the goods ripe for auction would be disposed of without delay, besides, the mafia of professional bidders would be addressed, resulting in improvement in revenue realization.

    The findings of the FTO revealed: “During investigation, another aspect came to surface i.e. whether the bidders who participate in the auction proceedings declare their economic activities in their income tax returns.

    “It is most probable that these economic activities may not be monitored by the IRS Wing, which if monitored carefully with due diligence may enhance legitimate revenue of the government.

    “Thus, there is a need to share data/information with the concerned field formations of Inland Revenue so that this sector is brought into the tax net.”

    The FTO recommended that the Collector, MCC Appraisement and Facilitation East and West, Karachi to pass on information about the bidders who participated in auctions on regular basis to respective IRS field formations.

  • FBR obtains information of motor vehicle buyers

    FBR obtains information of motor vehicle buyers

    The Federal Board of Revenue (FBR) is taking significant steps to obtain detailed information about motor vehicle buyers from manufacturers.

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