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FBR issues revised tax rate for freight, passenger vehicles

FBR issues revised tax rate for freight, passenger vehicles

SLAMABAD: Federal Board of Revenue (FBR) has issued revised income tax rates for freight and passenger vehicles under section 234 & 231B of Income Tax Ordinance, 2001.

According to the notification issued here, FBR has reduced tax rates on goods transport vehicles from Rs3 per kg to Rs2 per kg of the laden weight. Tax rates on transports vehicles with laden weight of 8,120 kg or more after a period of ten years from the date of registration would be Rs 1,200 per annum. Meanwhile, in case of passenger transport vehicles plying for hire, as Rs25 per seat per annum on 4 or more persons but less than 10 persons, Rs60 per seat for 10 or more persons but less than 20 persons, and Rs250 per seat per annum for 20 persons or more.

According to the section 234 of the Income Tax Ordinance, the tax rate should be collected as Rs750 on vehicles up to 1000cc, Rs 1,250 on vehicles on 1001cc to 1199cc, Rs1,750 on 1200cc to 1299cc, Rs3,000 on 1300cc to 1599cc, Rs4,000 on 1600cc to 1999cc, Rs8,000 on 2000cc and above.

Meanwhile, in case of lump sum payment, tax rate should be Rs7,500 on up to 1000cc, Rs12,500 up to 1001cc to 1199cc, Rs17,500 on 1200cc to 1299cc, Rs30,000 on 1300cc to 1599cc, Rs40,000 on 1600cc to 1999cc and Rs80,000 on 2000cc and above vehicles.

As per the notification, 231 purchase of motor car, the tax rate should be collected as Rs10,000 on vehicles up to 850cc, Rs20,000 on 851cc to 1000cc, Rs30,000 on 1001cc to 1300cc, Rs50,000 on 1301cc to 1600cc, Rs75,000 on 1601cc to 1800cc, Rs100,000 on 1801cc to 2000cc and Rs150,000 on above 2000cc.

Through Finance Act, 2013 the rates of advance tax collected by motor vehicle registering authority, at the time of registration of new locally manufactured motor vehicle have been revised. The revised rates specified in Division VII of Part IV of the First Schedule to the Income Tax Ordinance, 2001 are as follows:

Up to 850cc engine capacity, amount of tax Rs10,000; 851cc to 1000cc engine capacity, amount of tax Rs20,000; 1001cc to 1300cc engine capacity, amount of tax Rs30,000; 1301cc to 1600cc engine capacity, amount of tax Rs50,000; 1601cc to 1800cc engine capacity, amount of tax Rs75,000; 1801 cc to 2000cc engine capacity, amount of tax Rs100,000 and above 2000 cc engine capacity, amount of tax Rs150,000.

Through Finance Act, 2013 it has been provided that where the motor vehicle tax is collected in lump sum, the advance tax will also be collected in lump sum in like manner. Moreover, where this tax is collected from any person being the owner of goods transport vehicle, the tax so collected shall also be adjustable against total tax liability and not final tax on the income of such person from plying, or hiring out, of such vehicle.

The rates for collection of tax where the motor vehicle tax is collected in lump sum are as follows: Up to 1000cc, Rs 7,500; 1001 cc to 1199cc, Rs 12,500; 1200cc to 1299cc, Rs 17,500; 1300cc to 1599cc, Rs 30,000; 1600cc to 1999cc, Rs 40,000; 2000cc and above, Rs 80,000.