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.
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