Withholding tax exemption allowed on purchase of used motor vehicles

Withholding tax exemption allowed on purchase of used motor vehicles

ISLAMABAD: Federal Board of Revenue (FBR) has said that exemption from withholding tax has been granted on purchase of used motor vehicles from general public.

The FBR while explaining major changes made to Income Tax Ordinance, 2001 through Finance Act, 2021 said that used vehicle market is working in an undocumented environment.

In order to promote documentation and corporatization of this sector has been granted exemption from withholding tax on the purchase of used vehicle from general public and reduced minimum turnover tax from 1.5 per cent to 0.25 per cent .

“Necessary changes have been made in clause (45B) of Part IV of Second schedule,” the FBR said.

Leave a Reply

You have to agree to the comment policy.