The rates of income tax on transfer of motor vehicles during tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following are the rates of income tax transfer of motor vehicles on that shall be applicable during tax year 2022 under Section 231B:
(1) The rate of tax under sub-sections (1) and (3) of section 231B shall be as set out in the following table:–
TABLE
| S. No. | Engine capacity | Tax |
| (1) | (2) | (3) |
| 1. | upto 850cc | Rs. 7,500 |
| 2. | 851cc to 1000cc | Rs. 15,000 |
| 3. | 1001cc to 1300cc | Rs. 25,000 |
| 4. | 1301cc to 1600cc | Rs. 50,000 |
| 5. | 1601cc to 1800cc | Rs. 75,000 |
| 6. | 1801cc to 2000cc | Rs. 100,000 |
| 7. | 2001cc to 2500cc | Rs. 150,000 |
| 8. | 2501cc to 3000cc | Rs. 200,000 |
| 9. | Above 3000cc | Rs. 250,000 |
2) The rate of tax under sub-sections (2) of section 231B shall be as follows:–
| S. No. | Engine capacity | Tax |
| (1) | (2) | (3) |
| 1. | upto 850cc | – |
| 2. | 851cc to 1000cc | 5,000 |
| 3. | 1001cc to 1300cc | 7,500 |
| 4. | 1301cc to 1600cc | 12,500 |
| 5. | 1601cc to 1800cc | 18,750 |
| 6. | 1801cc to 2000cc | 25,000 |
| 7. | 2001cc to 2500cc | 37,500 |
| 8. | 2501cc to 3000cc | 50,000 |
| 9. | Above 3000cc | 62,500 |
Provided that the rate of tax to be collected shall be reduced by 10% each year from the date of first registration in Pakistan.
(3) The rate of tax under sub-section (2A) of section 231B shall be as follows:—
TABLE
| S. No. | Engine capacity | Tax |
| (1) | (2) | (3) |
| 1. | Up to 1000cc | Rs. 50,000 |
| 2. | 1001cc to 2000cc | Rs.100,000 |
| 3. | 2001cc and above | Rs.200,000” |
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
