Tax rates on passenger, goods transport vehicles have been revised by the Federal Board of Revenue (FBR) to rationalize applicable rates.
In a recent development, the Federal Board of Revenue (FBR) has revised the rates of advance tax applicable to passenger and goods transport vehicles. This update comes after the amendment of the Income Tax Ordinance, 2001 through the Finance Act, 2021. The FBR collects advance tax under Section 234 of the Income Tax Ordinance, 2001, and the revised rates are applicable to various categories of motor vehicles.
Overview of the Updated Rates:
Goods Transport Vehicles:
1. Tax Rate: Rs2.5 per kilogram of the laden weight.
• For Non-Active Taxpayers: The rate increases by 100% or Rs5 per kg of the laden weight.
2. Goods Transport Vehicles (laden weight 8120kg or more after ten years):
• Tax Rate: Rs1,200 per annum.
• For Non-Active Taxpayers: The rate increases by 100% or Rs2,400 per annum.
Passenger Transport Vehicles Plying for Hire:
1. Seating Capacity 4 to 9 persons:
• Tax Rate: Rs50 per seat per year.
• For Non-Active Taxpayers: The rate increases by 100% or Rs100.
2. Seating Capacity 10 to 19 persons:
• Tax Rate: Rs100 per seat per year.
• For Non-Active Taxpayers: The rate increases by 100% or Rs200.
3. Seating Capacity 20 persons or more:
• Tax Rate: Rs300 per seat per year.
• For Non-Active Taxpayers: The rate increases by 100% or Rs600.
Private Motor Vehicles:
1. Engine Capacity up to 1000cc:
• Tax Rate: Rs800, or Rs1,600 for Non-Active Taxpayers.
2. Engine Capacity 1001cc to 1199cc:
• Tax Rate: Rs1,500, or Rs3,000 for Non-Active Taxpayers.
3. Engine Capacity 1200cc to 1299cc:
• Tax Rate: Rs1,750, or Rs3,500 for Non-Active Taxpayers.
4. Engine Capacity 1300cc to 1499cc:
• Tax Rate: Rs2,500, or Rs5,000 for Non-Active Taxpayers.
5. Engine Capacity 1500cc to 1599cc:
• Tax Rate: Rs3,750, or Rs7,500 for Non-Active Taxpayers.
6. Engine Capacity 1600cc to 1999cc:
• Tax Rate: Rs4,500, or Rs9,000 for Non-Active Taxpayers.
7. Engine Capacity 2000cc and above:
• Tax Rate: Rs10,000, or Rs20,000 for Non-Active Taxpayers.
Motor Vehicle Tax Collected in Lump Sum:
1. Engine Capacity up to 1000cc:
• Tax Rate: Rs10,000, or Rs20,000 for Non-Active Taxpayers.
2. Engine Capacity 1001cc to 1199cc:
• Tax Rate: Rs18,000, or Rs36,000 for Non-Active Taxpayers.
3. Engine Capacity 1200cc to 1299cc:
• Tax Rate: Rs20,000, or Rs40,000 for Non-Active Taxpayers.
4. Engine Capacity 1300cc to 1499cc:
• Tax Rate: Rs30,000, or Rs60,000 for Non-Active Taxpayers.
5. Engine Capacity 1500cc to 1599cc:
• Tax Rate: Rs45,000, or Rs90,000 for Non-Active Taxpayers.
6. Engine Capacity 1600cc to 1999cc:
• Tax Rate: Rs60,000, or Rs120,000 for Non-Active Taxpayers.
7. Engine Capacity 2000cc and above:
• Tax Rate: Rs120,000, or Rs240,000 for Non-Active Taxpayers.
These revised rates are applicable to advance tax collection at the time of collecting motor vehicle tax, and individuals and entities are urged to familiarize themselves with the updated figures to ensure compliance with the Income Tax Ordinance, 2001. The FBR continues its efforts to streamline tax processes and enhance transparency in the taxation system.
