Registration of motor vehicles: FBR revises upward rates of adjustable advance tax

The Federal Board of Revenue (FBR) has revised upward rates of adjustable advance tax collected by every motor vehicle registering authority, at the time of registration of new locally-manufactured motor vehicle. The FBR on Friday clarified through an income tax circular that through Finance Act, 2013 the rates of adjustable advance tax collected by every motor vehicle registering authority, at the time of registration of new locally-manufactured motor vehicle, have been revised.
The revised rates specified in Division VII of Part IV of the First Schedule to the Income Tax Ordinance, 2001 are as follows: Upto 850cc engine capacity, amount of tax Rs 10,000; 851cc to 1000cc engine capacity, amount of tax Rs 20,000; 1001cc to 1300cc engine capacity, amount of tax Rs 30,000; 1301cc to 1600cc engine capacity, amount of tax Rs 50,000; 1601cc to 1800cc engine capacity, amount of tax Rs 75,000; 1801 cc to 2000cc engine capacity, amount of tax Rs 100,000 and above 2000 cc engine capacity, amount of tax would be charged of Rs 150,000.
As per section 234 of the Income Tax Ordinance, 2001 any person at the time of collecting motor vehicle tax shall also collect advance tax at the rates specified in Part IV of the First Schedule. If the motor vehicle tax is collected in instalments, the advance tax shall also be collected in instalments in like manner. Through Finance Act, 2013 it has been provided that where the motor vehicle tax is collected in lump sum, this advance tax shall also be collected in lump sum in like manner. Moreover, where this tax is collected from any person being the owner of goods transport vehicle, the tax so collected shall also be adjustable against total tax liability and not final tax on the income of such person from plying, or hiring out, of such vehicle. The rates for collection of tax where the motor vehicle tax is collected in lump sum are as follows: Upto 1000cc, Rs 7,500; 1001 cc to 1199cc, Rs 12,500; 1200cc to 1299cc, Rs 17,500; 1300cc to 1599cc, Rs 30,000; 1600cc to 1999cc, Rs 40,000 and 2000cc and above the rate of tax would be Rs 80,000.
The rate of collection of income tax under section 236 in the case of subscribers of mobile telephone and pre-paid card has been increased from 10 percent to 15 percent. The rate of collection of income tax under section 236A has been increased from 5 percent to 10 percent, FBR added.