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Tag: motor vehicle

  • FED imposition may negatively affect local automobile assembling: SBP

    FED imposition may negatively affect local automobile assembling: SBP

    KARACHI: The State Bank of Pakistan (SBP) has said that the imposition of federal excise duty (FED) may negatively affect local automobile industry as imported parts would become costlier.

    The enhancement of FED on imported vehicles could increase the demand for locally assembled vehicles. “However, because of increase in FED on the imported parts, automobile assemblers, who mostly rely on imported components, might be negatively affect,” the SBP said in its Financial Stability Review (FSR) released last week.

    FED on imported vehicles has been amended from 20 percent on vehicles above 1800cc to 25 percent for vehicles between 1800cc and 3000cc, and 30 percent for 3000cc or above.

    The central bank said that the automobile sector has the highest operational efficiency in the corporate sector.

    “It has, however, faced a contraction in the gross profit margin in CY18, as the bar on non-filers against purchase of new car affected the demand and the devaluation of the currency put pressure on production costs and profit margins.”

    Resultantly, local assemblers increased their prices to sustain profitability.

    “The outlook is positive in terms of enhanced production capacity as Kia, Hyundai and Renault are expected to enter the market in the coming years.”

  • FBR issues withholding tax rates on registration of motor vehicles

    FBR issues withholding tax rates on registration of motor vehicles

    ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax rates on registration of new motor vehicles effective from July 01, 2019.

    The FBR said that motor vehicle registration authorities are required to collect/deduct advance tax on private motor vehicles under Section 231B of Income Tax Ordinance, 2001 at the time of registration of new motor vehicles from persons getting new locally manufactured motor vehicles in their name.

    Following are the withholding tax rates for registration of new motor vehicles under Section 231B(1):

    Engine capacityTax RatePersons not appearing on ATL*
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs30,000
    1001CC to 1300CCRs25,000Rs50,000
    1301CC to 1600CCRs50,000Rs100,000
    1601CC to 1800CCRs75,000Rs150,000
    1801CC to 2000CCRs100,000Rs200,000
    2001CC to 2500CCRs150,000Rs300,000
    2501CC to 3000CCRs200,000Rs400,000
    Above 3000CCRs250,000Rs500,000

    ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

    The FBR said that under Section 231B(1A) every leasing company, scheduled bank, investment bank, development finance institution, Modarba (Sharia Compliant or under conventional mode) shall collect four percent of the value of motor vehicles at the time of lease from persons not appearing in the ATL.

    The FBR said that under Section 231B(2) the motor vehicle registration authority shall collect withholding tax from person transferring the ownership/registration at the time of transfer:

    Engine capacityTax RatePersons not appearing on ATL*
    Up to 850CCRs0Rs0
    851CC to 1000CCRs5,000Rs10,000
    1001CC to 1300CCRs7,500Rs15,000
    1301CC to 1600CCRs12,500Rs25,000
    1601CC to 1800CCRs18,750Rs37,500
    1801CC to 2000CCRs25,000Rs50,000
    2001CC to 2500CCRs37,500Rs75,000
    2501CC to 3000CCRs50,000Rs100,000
    Above 3000CCRs62,500Rs125,000

    ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

    The FBR said that under Section 231B(3) every manufacturer of motor vehicle shall collect withholding tax from purchaser at the time of sale of vehicle at the following tax rates:

    Engine capacityTax RatePersons not appearing on ATL*
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs30,000
    1001CC to 1300CCRs25,000Rs50,000
    1301CC to 1600CCRs50,000Rs100,000
    1601CC to 1800CCRs75,000Rs150,000
    1801CC to 2000CCRs100,000Rs200,000
    2001CC to 2500CCRs150,000Rs300,000
    2501CC to 3000CCRs200,000Rs400,000
    Above 3000CCRs250,000Rs500,000

    ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

  • FBR allows reduced duty rates for import of certain CBU vehicles

    FBR allows reduced duty rates for import of certain CBU vehicles

    KARACHI: Federal Board of Revenue (FBR) has allowed reduced rate of customs duty on import of certain automotive vehicles in Completely Built Units (CBUs) under Automotive Development Policy 2016-2020.

    Following are the automotive vehicles, which are granted reduced customs duty rates on import:

    1. Agricultural Tractors, having an engine capacity exceeding 26 kW but not exceeding 75kW (PCT code 8701.9220, 8701.9320) at 15 percent.

    2. Agricultural Tractors (other than mentioned at S. No. 1 above) (PCT Code 8701.9100, 8701.9400, 8701.9500) at 10 percent.

    3. Fully dedicated LNG buses (CBU) (PCT Code 8702.9030) at one percent

    4. Fully dedicated LPG buses (CBU) (PCT Code 8702.9040) at one percent

    5. Fully dedicated CNG buses (CBU) (PCT Code 8702.9050) one percent.

    6. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8702.2090, 8702.3090) at one percent.

    7. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8704.2214, 8704.2294, 8704.2340, 8704.3240) at one percent.

    8. Trailers (PCT code 87.16) at 15 percent

  • FBR restricts sale of duty free imported motor vehicles, machinery for Thar Coal Field

    FBR restricts sale of duty free imported motor vehicles, machinery for Thar Coal Field

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed restriction on selling the duty free imported goods for machinery and motor vehicles for Thar coal field.

    In order to impose restrictions the FBR on Saturday issued SRO 673(I)/2019 to amend SRO 268(I)/2015 dated April 02, 2015.

    The FBR allowed exemption from whole of customs duty on import of coal mining equipment and machinery including vehicles for site use, if not manufactured locally, imported for Thar Coal Field.

    Through the latest SRO, the FBR said that the goods shall not be sold or otherwise disposed of without prior approval of the FBR.

    “In case such goods are sold or otherwise disposed of after ten years of importation thereof, the same shall be subject to payment of duties and taxes as prescribed by the FBR.”

    In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of ten years from the date of importation thereof, the same shall be subject to payment of statutory rates of duties and taxes as were applicable at the time of import.

    “These goods shall, however, be allowed to be transferred to the other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable.”

    The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs.

  • Additional advance tax proposed on all type of motor vehicles to discourage premium

    Additional advance tax proposed on all type of motor vehicles to discourage premium

    The Overseas Chamber of Commerce and Industry (OICCI), representing foreign investors and multinational companies in Pakistan, has proposed the imposition of an additional advance tax of Rs100,000 on all types of motor vehicles sold before registration.

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

    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 VehicleFilerNon-Filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000

     
    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 CapacityTax for FilerTax for Non-Filer
    Up to 850CCRs 0Rs5,000
    851CC to 1000CCRs5,000Rs15,000
    1001CC to 1300CCRs7,500Rs25,000
    1301CC to 1600CCRs12,500Rs65,000
    1601CC to 1800CCRs18,750Rs100,000
    1801CC to 2000CCRs25,000Rs135,000
    2001CC to 2500CCRs37,500Rs200,000
    2501CC to 3000CCRs50,000Rs270,000
    Above 3000CCRs62,500Rs300,000

     
    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 CapacityTax for FilerTax for Non-filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000
  • Customs to auction huge quantity of vehicles, motor bikes on April 09

    Customs to auction huge quantity of vehicles, motor bikes on April 09

    KARACHI: Pakistan Customs has announce public auction of used motor vehicles and heavy bikes to be held on April 09, 2019 at Bay West, West Wharf Road, Karachi.

    Auction of fresh vehicles under schedule No. 04/ 2019 to be held on April 09, 2019:

    01. Nissan Moco Car, Chassis No. MG33S-1434760, year 2014

    02. Honda-N car, Chassis No. JGI-1208909, year 2016

    03. Toyota Aqua Hybrid Car, Chassis No. NHP10-6492089, year 2016, capacity 1496ml

    04. Toyota Passo, Chassis No. M700A-0068740, Year 2017, Capacity 996cc

    05. Toyota Aqua Hybrid Car, Chassis No. NHP10-6675744, year 2017, capacity 1496ml

    06. Daihatsu Move Car, Chassis No. LA160S-0022740, year 2016, capacity 658cc

    07. Honda Vezel Hybrid Car, Chassis No. RU3-1009600, Year 2014

    08. Suzuki Alto, Chassis No. HA36S-318639, year 2019-04-07

    09. Toyota Prius Hybrid car, chassis no. ZVW50-6057948, capacity 1797ml, year 2016

    10. Suzuki Wagon-R, chassis no. NH34-535805, year 2016

    11. Suzuki Alto, Chassis No. HA36S-283360, year 2016

    12. Toyota Prius Hybrid Car, Chassis No. AVW50-6040670, year 2016, capacity 1797cc

    13. Toyota Aqua Hybrid Car, chassis No. NHP10-6489786, year 2016, capacity 1496ml

    14. Suzuki Alto Lapin Car, Chassis No. HE33S-114646, year 2015

    15. Suzuki Every Wago, Chassis No. DA17W-160902, Year 2018

    16. Honda-N WGN Car, Chassis No. JHI-1399120, year 2018, milage 562kms

    17. Honda Fit Hybrid Car, Chassis No. GP5-3313188, year 2016

    18. Suzuki Every Van, Chassis No. Da64V-827933, year 2013

    19. Toyota Aqua Hybrid Car, Chassis No. NHP10-6537080, year 2016, Capacity 1496ml

    20. Nissan Dayz Car, Chassis No. B21W-0473466, Year 2017

    21. Honda Vezel Hybrid Car, Chassis No. RU3-1129894, year 2016

    22. Suzuki Wagon-R Car, Chassis No. MH35S-109600, year 2017

    23. Nissan Dayz Roox Car, Chassis No. B21A-0346728, year 2017

    24. Daihatsu Hijet Cargo Van, Chassis No. S331V-0119751, year 2014, Capacity 658cc

    25. Honda Fit Hybrid Car, Chassis No. GP5-1213366, Year 2016

    26. Toyota CH-R Hybrid, Chassis No. ZYX10-2030563, year 2017, capacity 1797ml

    27. Daihatsu Mira E:S, Chassis No. La350S-0087051, year 2018, capacity 658cc

    28. Toyota Aqua Hybrid Car, Chassis No. NHP10-2545720, year 2016, capacity 1496ml

    29. Suzuki Alto Car, Chassis No. HA36S-339803, year 2017, capacity 658cc

    30. Daihatsu Move Car, Chassis No. LA160S-0029143, year 2017, capacity 658cc

    31. Toyota Voxy Van, Chassis No. ZWR80-0035138, year 2014, capacity 1794ml

    32. Suzuk Wagon-R, Chassis No. NH34S-532308

    33. Honda Vezel Hybrid, Chassis No. RU3-1202746, year 2016

    34. Suzuki Singray Wagon-R, Chassis No. MH44S-509107, Year 2016

    35. Suzuki Alto Car, Chassis No. HA36S-367262, year 2017

    Auction of leftover vehicles:

    01. Suzuki Audi, Chassis No. WAUZZZGAIJ018984, mileage 3664km

    02. Suzuki Bandit Car, Chassis No. MA36S-609297, year 2015

    03. Toyota Passo Car, Chassis No. M710A-0005138, year 2016, capacity 998cc

    04. Toyota Prius Hybrid Car, Chassis No. ZVW41-0037004, year 2016, capacity 1797

    05. Toyota Aqua Hybrid Car, Chassis No. NHP10-6360564, year 2014, capacity 1496ml

    06. Range Rover Evoque, Chassis No. SALVA2AG70H828587, year 2013

    07. Suzuki Lapin Car, Chassis No. HE33S-179190, year 2017

    08. Daihatsu Copen Car, Chassis No. LA400K-0007555, year 2014, capacity 658cc

    09. Mitsubishi Mirage Car, Chassis No. A03A-0034375, year 2015

    10. Daihatsu Move Car, Chassis No. LA150S-0119262

    Used motor bikes:

    i. New Arctic Cat ATV Bike, Chassis No. RFB14ATV3EK6T0888, year 2014, Capacity 90cc

    ii. New Arctic Cat ATV Bike, Casssis No. RFB14ATVXEK6T0905, year 204, capacity 90cc

    iii. New Arctic Cat ATV Bike, Chassis No. RFB14ATVXEK6T0919, year 2014, capacity 90cc

    iv. New Arctic Cat ATV Bike, Chassis No. RFB14ATV2EK6T0896, year 2014, capacity 90cc

    v. New Arctic Cat ATV Bike, Chassis No. RFB14ATV9EK6T0928, year 2014, capacity 90cc

    vi. New Arctic Cat ATV Bike, Chassis No. RFB14ATV9EK6T0894, year 2014, capacity 90cc

    vii. New Arctic Cat ATV Bike, Chassis No. RFB14ATV3EK6T0910, year 2014, capacity 90cc

    viii. New Arctic Cat ATV Bike, Chassis No. RFB14ATV3EK6T0938, year 2014, capacity 90cc

  • Local car assemblers to be beneficiary on concession to non-compliant taxpayers

    Local car assemblers to be beneficiary on concession to non-compliant taxpayers

    KARACHI: The local car assemblers are main beneficiary of the government decision to allow non-compliant taxpayers for purchasing motor vehicles, analysts said on Thursday.

    A day earlier on floor of the house Finance Minister Asad Umar presented this proposal to the Finance Supplementary (Second Amendment) Bill, 2019 to allow non-filers of income tax returns to purchase any engine capacity of motor vehicles.

    Though the decision has been taken to generate tax revenue through collection of withholding tax on purchase of motor vehicles as non-filers are required to pay higher rate but it seems to be a big ‘U’ turn by the present government.

    The PML-N government in its last budget 2018/2019 announced to imposed restriction on non-filers to purchase motor vehicles of any engine capacity in order to bring large number of tax evaders into tax net.

    The present PTI government however in its Finance Supplementary (Second Amendment) Bill, 2019 initially proposed to allow non-filers for purchasing motor vehicles with engine capacity up to 1300CC. However, finalizing this bill and approval from the parliament the concession to non-filers further enhanced and now they would be able to purchase any engine capacity motor vehicle.

    The analysts at Taurus Securities Limited said that the Supplementary Finance (Second Amendment) Bill, commonly known as the ‘Mini-Budget’, passed in the National Assembly yesterday, in the midst of an opposition walk-out protesting the Bill’s contents.

    The Bill has wholly removed the ban on Non-Filers; the initial proposal allowed Non-Filers access to the market for cars with a cylinder capacity of less than 1300cc.

    All three auto players (PSMC, INDU and HCAR) will be the beneficiary of this reversal in policy, as they will now be able to clear their build-up of stock.

  • Import of up to 25 motor vehicles allowed duty, tax free for EPZ investment

    Import of up to 25 motor vehicles allowed duty, tax free for EPZ investment

    The government of Pakistan allowed import of up to 25 motor vehicles without duty and tax to investors making substantial contributions to export processing zones (EPZ).

    (more…)
  • FED rates revised for locally manufactured, imported vehicles

    FED rates revised for locally manufactured, imported vehicles

    Federal Excise Duty (FED) rates have been revised for locally manufactured and imported vehicles through the Finance Supplementary (Second Amendment) Bill, 2019.

    (more…)