Tax rates on goods, passenger transport vehicles during 2022-2023

Federal Board of Revenue (FBR) has issued rates of withholding tax on goods and passenger transport vehicles to be paid during the year 2022-2023.

The FBR updated withholding tax card 2022-2023 after incorporating amendments made through Finance Act, 2022 to the Income Tax Ordinance, 2001.

The tax authorities collect withholding tax on goods and passenger transport vehicles under Section 234 of the Income Tax Ordinance, 2001.

Following are withholding tax rates and text of Section 234 of the Ordinance:

WITHHOLDING TAX RATES:

——————————————————————

Withholding tax is Rs2.50 per kg of leden weight goods transport vehicles.

Withholding tax is Rs1,200 per annum in case of vehicles above 8,120 kg of laden weight.

——————————————————————-

For passenger transport vehicle per seat:

4 or more persons but less than 10 persons, the tax rate is Rs200 per seat per annum in case of non-air conditioned and Rs375 in case of air conditioned.

10 or more persons but less than 20 person, the tax rate is Rs500 per seat per annum in case of non-air conditioned and Rs750 in case of air conditioned.

20 persons or more, the tax rate is Rs1,000 per seat per annum in case of non-air conditioned and Rs1,500 in case air conditioned.

Federal Board of Revenue (FBR) has notified withholding tax rate on payment made for brokerage and commissioner during tax year 2022-2023.

——————————————————————-

Section 234: Tax on motor vehicles

(1) Any person at the time of collecting motor vehicle tax shall also collect advance tax at the rates specified in Division III of Part IV of the First Schedule.

(2) If the motor vehicle tax is collected in instalments or lump sum the advance tax may also be collected in instalments or lump sum in like manner.

(2A) In respect of motor cars used for more than ten years in Pakistan, no advance tax shall be collected after a period of ten years.

(3) In respect of a passenger transport vehicle with registered seating capacity of ten or more persons, advance tax shall not be collected after a period of ten years from the first day of July of the year of make of the vehicle.

(4) In respect of a goods transport vehicle with registered laden weight of 7 less than 8120 kilograms, advance tax shall not be collected after a period of ten years from the date of first registration of vehicle in Pakistan.

(5) Advance tax collected under this section shall be adjustable.

“(6) For the purpose of sub-sections (1) and (2) “motor vehicle” shall include the vehicles specified in sub-section (7) of section 231B.”