FBR issues rates of withholding tax on motor vehicles

KARACHI: Shaukat Mahmood, Director General Withholding Taxes of Federal Board of Revenue (FBR), on Monday issued updated rates of withholding tax on motor vehicles as amended through Finance Act, 2015.

In a letter Mahmood said that certain amendments have been made in the Income Tax Ordinance, 2001 through Finance Act, 2015. The amendments made in provisions of Income Tax Ordinance. 2001 and the latest withholding tax rates under various sections are applicable with effect from July 01, 2015.
Major provisions of withholding tax being dealt by the Excise and Taxation Department are:
i. Section 231B advance tax on private motor vehicles (i.e. withholding tax on registration of vehicles)
ii. Section 234 Tax on motor vehicles (i.e. withholding token tax on vehicles).
The tax rates for the Section 231B and 234 as per Finance Act, 2015 applicable with effect from July 01, 2015 are being given here under:
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DG withholding tax Shaukat Mahmood directed the all field offices to deduct withholding tax at the revised rates including tax under section 234 of the Income Tax Ordinance, 2001.

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