Tax on registration will be increased
Luxury car buyers will be charged up to Rs 0.3 million
The Post Report
LAHORE: Following the imposition of tax on the luxury cars, the government has now decided to enforce a withholding tax of Rs 7,500 to Rs 50,000 besides an increase in the tax at the time of registration of all vehicles having horse power ranging from 850cc to 2000cc.
The income tax department has announced a raise in the income tax on registration of cars. According to the proposed withholding tax on cars, Rs 7,500 withholding tax will be charged on 850cc cars, Rs 10,500 on 1000 cc cars and Rs 16,875 on cars having the horse power ranging from 1300 cc to 1600. Likewise Rs 22,500 withholding tax has been imposed on cars of 1600 cc up to 1800 cc, Rs 26,875 on cars above 1800 cc up to 2000 cc, while Rs 50,000 on cars above 2000 cc horse power.
Similarly, luxury car buyers would be separately charged 0.2 million rupees on cars ranked above 2000 cc and 0.3 million rupees on luxury cars of above 3000 cc horse power. It is pertinent to mention that one percent of the cost-price is charged as registration fee on 800 cc car while Rs 900 are charged for the number plate and Rs 600 as income tax fee. In the same way two percent and four percent of the cost price is charged on the vehicles above 1000 cc and 2000 cc respectively. The recently imposed withholding tax besides other fees will further increase the cost-prices of the aforementioned vehicles.
The excise department has already started charging the withholding tax after the notification of FBR in this regard.
Meanwhile, the income tax department has also increased the income tax on the registration of vehicles according to which Rs 750 income tax will be charged on vehicles ranging 100 cc to 999 cc, Rs 1,250 on 1,000 cc to 1199 cc, Rs 1,750 on 1,199 cc to 1,299 cc, Rs 3,000 on 1300 cc to 1499 cc, Rs 4,000 on 1500 cc to 2000 cc and Rs 8,000 on 2000 cc to 2500 cc.
Source: The Post, 8/7/2008