Withholding tax imported motor vehicles made mandatory at time of registration

KARACHI: The Federal Board of Revenue (FBR) has made mandatory the collection of withholding tax at the time of registration of imported vehicle.
According to the Finance Act, 2014 passed by the Parliament the money bill amended and now withholding tax will also be collected on registration of imported motor vehicles.
The Finance Bill, 2014 proposed to introduce collection of advance tax on registration of locally manufactured motor vehicles and transfer of registration or ownership of private motor vehicles to be collected by Excise & taxation department.
In the Finance Act, 2014 it has also been provided that no collection of advance tax shall be made on transfer of vehicles after five years from the date of first registration in Pakistan.
The rate of advance tax on transfer of registration or ownership of private motor vehicles has been reduced by 10 percent each year from the date of registration in Pakistan.

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