Directorate General of Withholding Taxes Federal Board of Revenue (FBR) has issued updated rates of advance tax on private motor vehicles (withholding tax on purchase, registration and transfer of motor vehicles) and withholding tax to be collected along with token tax on vehicles from July 1, 2015. In this regard, Shaukat Mahmood Director General Withholding Taxes FBR has issued instructions to Secretaries Excise and Taxation of all four provinces here on Monday.
The FBR has mentioned enhanced rates for non-filer of income tax returns under section 231B Advance tax on private motor vehicles (ie, withholding tax on registration of vehicles) and section 234 tax on motor vehicles (ie, withholding tax along with token tax on vehicles). According to the DG Withholding Taxes FBR, certain amendments have been made in the Income Tax Ordinance, 2001, through the Finance Act, 2015. The amendments made in the provisions of Income Tax Ordinance, 2001 and the latest withholding tax rates under various sections are applicable w.e.f. July 1, 2015. Major provisions of withholding tax being dealt by the Excise and Taxation Department are section 231B Advance tax on private motor vehicles (ie withholding tax on registration of vehicles) and section 234 tax on motor vehicles (ie, withholding tax along with token tax on vehicles).
The tax rates for the section 231B and 234 as per Finance Act, 2015 would be applicable from July 1, 2015. Under section 231B (Advance tax on purchase, registration and transfer of motor vehicles), engine capacity up to 850cc, tax rate would be Rs.10,000 (filer), Rs.10,000 (non-filer); 851cc to 1000cc, Rs.20,000 (filer), Rs.25,000 (non-filer); 1001cc to 1300cc, Rs.30,000 (filer), Rs.40,000 (non-filer); 1301cc to 1600cc, Rs.50,000 (filer), Rs.100,000 (non-filer); 1601cc to 1800cc, Rs.75,000 (filer), Rs.150,000 (non-filer); 1801cc to 2000cc, Rs.100,000 (filer), Rs.200,000 (non-filer); 2001cc to 2500cc, Rs.150,000 (filer), Rs.300,000 (non-filer); 2501cc to 3000cc, Rs.200,000 (filer), Rs.400,000 (non-filer) and above 3000cc engine capacity, the tax rate would be Rs.250,000 (filer) and Rs.450,000 (non-filer).
The rate of tax under sub-section (2) of section 231B shall be as follows:- Up to 850cc tax rates would be Rs.0 (filer), Rs.5,000 (non-filer); 851cc to 1000cc, Rs.5,000 (filer), Rs.15,000 (non-filer); 1001cc to 1300cc, Rs.7,500 (filer), Rs.25,000 (non-filer); 1301cc to 1600cc, Rs.12,500 (filer), Rs.65,000 (non-filer); 1601cc to 1800cc, Rs.18,750 (filer), Rs.100,000 (non-filer); 1801cc to 2000cc, Rs.25,000 (filer), Rs.135,000 (non-filer); 2001cc to 2500cc, Rs.37,500 (filer), Rs.200,000 (non-filer); 2501cc to 3000cc, Rs.50,000 (filer), Rs.270,000 (non-filer) and above 3000cc tax rate would be Rs.62,500 (filer) and Rs.300,000 (non-filer). Under section 234 (tax on motor vehicle), in the case of goods transport vehicles, tax rate would be Rs 2.5 per kg of the laden weight (filer) and Rs 4 per kg of the laden weight (non-filer).
1(A) Transport vehicle with laden weight of 8120 kg or more after a period ten years from the date of first registration passenger transport, tax rate would be Rs.1200 per annum. (2) In the case of Passenger Transport Vehicles plying for hire, seating capacity: Four or more persons but less than 10 person, tax rate would be Rs.50 (filer), Rs.100 (non-filer); 10 or more persons but less than 20 person, Rs.100 (filer), Rs.200 (non-filer); 20 persons or more, tax rate would be Rs.300 (filer) and Rs.500 (non-filer).
(3) Other private motor cars with engine capacity of up to 1000cc, tax rate would be Rs.800 (filer), Rs.1200 (non-filer); 1001cc to 1199, Rs.1,500 (filer), Rs.4,000 (non-filer); 1200cc to 1299cc, Rs.1,750 (filer), Rs.5,000 (non-filer); 1300cc to 1499cc, Rs.2,500 (filer), Rs.7,500 (non-filer); 1500cc to 1599cc, Rs.3,750 (filer), Rs.12,000 (non-filer); 1600cc to 1999cc, Rs.4,500 (filer), Rs.15,000 (non-filer) and 2000cc & above, Rs.10,000 (filer) and Rs.30,000 (non-filer). In view of thereof, it is requested that all the field offices may be directed to deduct withholding tax at the revised rates including tax u/s 231B and u/2 234 of the Income Tax Ordinance, 2001, Director General Withholding Taxes FBR added.
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