Used cars: Govt increases tax concession rate to 2%

Depreciation rate also rises.


Express May 21, 2011

ISLAMABAD:


The federal government has increased the rate of tax concession from one per cent to two per cent per month on import of used vehicles under the gift and transfer of residency scheme.


The decision will also be applicable on import of buses, trucks, agricultural tractors and wagons. The Federal Board of Revenue (FBR) in its notification also increased the maximum limit of relief from 50 per cent to 60 per cent.

A senior officer from the FBR told that the bureau amended its earlier SRO No 1(2011)577 of June 6, 2005 and allowed import of five-year old vehicles. The duty or taxes on import of such vehicles is received in dollars or Pakistani currency.

He said that on import of 800 cc cars under this scheme $4,400 are received as tax or duty, on 801 to 1,000 cc cars $4,500 are charged, on 1001 to 1,300 cc vehicles $11,000 are charged, on 1,301 to 1,500 cc $15,400 are charged, on 1,501 to 1,600 cc $18,700 are charged and on 1601 to 1,800 cc vehicles $23,100 or equal amount in Pakistani currency are charged as duty or taxes.

A concession at 2 per cent per month on used vehicles will be allowed from these taxes. However, if the vehicle is between two-and-a-half years to five-years old, the limit of maximum relief of 60 per cent will be applied. The period will be counted from the date of the registration of the vehicle abroad to its entry in the country.



Published in The Express Tribune, May 22nd, 2011.

COMMENTS (2)

Ahmed | 12 years ago | Reply Very well done, throwing dust in the eyes, you mean on the import of 1,600 cc to 1,800 cc vehicles, we have to pay $ 23,100 (more than 1.9 millions Pak Rs.), on the import of 5-years old vehicle. ITs very good. How you people are making the public fool.
lazydude | 12 years ago | Reply OoolalllLaa :P
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