Govt mulling slapping additional taxes on cars from next week

By: News Desk
Published: 03:36 PM, 5 Feb, 2021
Govt mulling slapping additional taxes on cars from next week
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The government is considering promulgation of tax amendment ordinance next week, reported 24NewsHD TV channel on Friday.

Quoting sources, the TV channel reported that the Federal Board of Revenue (FBR) had suggested withdrawing three percent additional sales tax on the import of electric vehicles while giving one percent tax exemption to the locally manufactured electric cars.

Similarly, the ordinance proposes an exemption of one percent additional customs duty on the electric vehicles’ spare parts.

Under the ordinance, an additional tax of Rs0.2 million will be levied on the purchase of new vehicles.

However, the sources said that legislation was required for levying the withholding tax.

Furthermore, the federal cabinet has already given a green signal to levying additional taxes on vehicles.

The sources further disclosed that new taxes would be levied if a person sold his new car within three months of its purchase.

Additional withholding tax of Rs50,000 would be levied on cars up to 1,000cc, the sources said and added, “Additional tax of Rs0.1 million would be levied on cars ranging between 1,000 and 2,000cc. Similarly, an additional withholding tax of Rs0.2 million would be levied on cars over 2,000cc.

The additional withholding tax will remain in force till June 30, 2021.