Pay your tax or else...

LAHORE: Excise and Taxation Minister Mujtaba Suhjaur Rehman has advised imported car owners to pay off their luxury tax to avoid cancellation of registration, fine, confiscation or arrests, a press release says.

The tax was imposed on vehicles on Jun 30, 2005 on vehicles with an engine capacity of 2000 CC and more. Attending a meeting at his house early Sunday, the minister said if people comply and pay off their taxes, it will save them from embarrassment or any hazardous consequences.

He added the provincial government is in need of money to fund development projects and the public should be more responsible and cooperative. He stated that the chief minister has requested to exempt people living with “harder circumstance” from the tax while all factors including economic situation and tax liabilities were considered prior to the request.

He went on to say that achieving results is important when funds are allocated for a development project, therefore the department is keen on tightening the system for speedy recovery from tax defaulters.

In September 2009, more than 33,000 registration were canceled – for luxury tax default. He disclosed that nearly 70 per cent cars in Lahore roam about without paying their taxes adding tax for 2,000 CC is Rs 200,000 while for a car of and above 3,000 CC stands at Rs 300,000.