Quantcast
Sunday , August 20 2017
Breaking News
Home / Breaking News / Provincial tax departments to be e-linked with FBR
Provincial tax departments to be e-linked with FBR

Provincial tax departments to be e-linked with FBR

ISLAMABAD: Federal Board of Revenue has decided to link all provincial excise and taxation departments with FBR data bank. This will enable FBR to collect motor vehicles data electronically for registration of vehicle owners and maintaining withholding tax deduction data.

Sources said that Chief Executive Officer of Pakistan Revenue Automation Limited has taken initiatives to ensure electronic transmission of data from the provincial excise and taxation departments to FBR. Formal approval of the tax authorities has been obtained for implementation of the plan.

Earlier the issue was discussed during a meeting of FBR chairman with provincial secretaries of excise and taxation departments late November. A consensus was developed among the stakeholders to electronically maintain data of the newly registered vehicles for documentation as well as deduction of tax purposes.

CEO PRAL has directed its field formations to visit the Director General, excise and taxation department of the respective Province/Islamabad Capital Territory, Islamabad and conduct a study regarding electronic communication of motor vehicles data from the respective Excise and Taxation Department to FBR with a view to ensuring that the data can constitute the monthly withholding tax statement and may be useful for computation of tax deducted.

FBR has already informed the provincial excise and taxation departments about the withholding income tax rates on registration of new locally manufactured vehicles and withholding tax collected along with motor vehicle tax on old ones under section 234 and 231B of Income Tax Ordinance, 2001.

Through Finance Act, 2013 the rates of adjustable advance tax collected by every motor vehicle registering authority, at the time of registration of new locally manufactured motor vehicle have been revised. As per section 234 of the Income Tax Ordinance,2001 any person at the time of collecting motor vehicle tax shall also collect advance tax at the rates specified in Part IV of the First Schedule. If the motor vehicle tax is collected in installments, the advance tax shall also be collected in installments.