ISLAMABAD:
Federal Board of Revenue Chairman Mumtaz Haider Rizvi has said that authorities are considering increasing tax rates on registration of new vehicles from July 1st.
In a briefing to the NA Standing Committee on Finance Shahid Hussain Asad, member domestic taxes said that according the proposal car manufacturers will recover withholding tax from buyers who will then add this levy in the car price. He said this step would help minimise tax evasion. Currently, the government is collecting withholding tax from buyers, which is adjustable provided the buyers are regular taxpayers.
The chairman’s statement is contrary to the announcement of Prime Minister Yousaf Raza Gilani. The premier has declared that in the next budget the government would neither levy new taxes nor increase the existing rates.
Published in The Express Tribune, March 2nd, 2012.
COMMENTS (2)
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World-wide, taxes are paid up-front on purchase and they are paid each year on the depreciated value of the car according to the published "Blue-book" which is an authoritative source of valuation.
I have no idea what the tax rate is in Pakistan but it should be progressive, that is, linked with the sale price/engine capacity with the steepest tax on large vehicles. There should be a tax each year as well based on assessed market value.
Amazing that we are all excited at the fact that there will be no new taxes in the next budget!
What kind of people are we?
Good. Once again FBR has adopted an easy solution to gather tax.
How many car owners, residential house owners with property over 250 sq yds that are required by law to file return of income are actually filing their return of income?.FBR should tighten it's enforcement