Federal Board of Revenue (FBR) has issued updated rates of withholding tax on purchase of motor cars during 2021-2022.
Car manufacturers are required to deduct withholding tax under Section 231B(3) of Income Tax Ordinance, 2001 from purchaser of the motor card.
WITHHOLIDNG TAX CARD 2021/2022
The rate of advance tax on registration/transfer of motor vehicles:
Up to 850cc: Rs7,500 and for persons not on Active Taxpayers List (ATL) Rs15,000
851cc to 1000cc: Rs15,000 and for persons not on ATL Rs30,000
1001cc to 1300cc: Rs25,000 and for persons not on ATL Rs50,000
1301c to 1600cc: Rs50,000 and for persons not on ATL Rs100,000
1601cc to 1800cc: Rs75,000 and for persons not on ATL Rs150,000
1801cc to 2000cc: Rs100,000 and for persons not on ATL Rs200,000
2001cc to 2500cc: Rs150,000 and for persons not on ATL Rs300,000
2501cc to 3000cc: Rs200,000 and for persons not on ATL Rs400,000
Above 3000cc: Rs250,000 and for persons not on ATL Rs500,000
The tax collected/deducted under this head is adjustable against total payable liability of the taxpayer.
