KARACHI: The Federal Board of Revenue (FBR) has notified revised rates of withholding tax for Section 231B of the Income Tax Ordinance, 2001 effective July 01, 2015.
Advance tax on purchase, registration and transfer of motor vehicles under Section 231B shall be collected as per the following schedule:
Advance tax will be Rs10,000 for both filers and non-filers on motor vehicles having engine capacity up to 850cc;
Advance tax will be Rs20,000 for filers and Rs25,000 for non-filers on motor vehicles having engine capacity 851cc to 1000cc;
Advance tax will be Rs30,000 for filers and Rs40,000 for non-filers on motor vehicles having engine capacity 1001cc to 1300cc;
Advance tax will be Rs50,000 for filers and Rs100,000 for non-filers on motor vehicles having engine capacity 1301cc to 1600cc;
Advance tax will be Rs75,000 for filers and Rs150,000 for non-filers on motor vehicles having engine capacity 1601cc to 1800cc;
Advance tax will be Rs100,000 for filers and Rs200,000 for non-filers on motor vehicles having engine capacity 1801cc to 2000cc;
Advance tax will be Rs150,000 for filers and Rs300,000 for non-filers on motor vehicles having engine capacity 2001cc to 2500cc;
Advance tax will be Rs200,000 for filers and Rs400,000 for non-filers on motor vehicles having engine capacity 2501cc to 3000cc;
Advance tax will be Rs250,000 for filers and Rs450,000 for non-filers on motor vehicles having engine capacity above 3000cc.
The rate of tax on transfer of registration or ownership of vehicles as per sub-section (2) of Section 231B will be Rs5,000 for non-filer and nil for filer on vehicles having engine capacity up to 850cc; Rs5,000 for filer and Rs15,000 for non-filer on motor vehicles having engine capacity 851cc to 1000cc; Rs7,500 for filer and Rs25,000 for non-filer on motor vehicles having engine capacity 1001cc to 1300cc; Rs12,500 for filer and Rs65,000 for non-filer on motor vehicles having engine capacity 1301cc to 1600cc; Rs18,750 for filer and Rs100,000 for non-filer on motor vehicles having engine capacity 1601cc to 1800cc; Rs25,000 for filer and Rs135,000 for non-filer on motor vehicles having engine capacity 1801cc to 2000cc; Rs37,500 for filer and Rs200,000 for non-filer on motor vehicles having engine capacity 2001cc to 2500cc; Rs50,000 for filer and Rs270,000 for non-filer on motor vehicles having engine capacity 2501cc to 3000cc and Rs62,500 for filer and Rs300,000 for non-filer on motor vehicles having engine capacity above 300,000.
The tax to be collected on transfer of vehicles shall be reduced by 10 percent each year from the date of first registration in Pakistan and there will be no collection of tax on transfer of vehicles after five years from the date of first registration in Pakistan.