Manufacturers to collect Rs450,000 from non-filers on sale of above 3,000CC vehicle


KARACHI: The Federal Board of Revenue (FBR) has said that a non-filers of income tax return is required to pay up to Rs450,000 as withholding tax on purchase of motor vehicle.
According to Withholding Tax Card 2017/2018 issued by FBR, a manufacturer of motor vehicle is required deduct withholding tax under Section 231B(3) of Income Tax Ordinance, 2001 from purchaser. The applicable withholding tax rates are different on the purchase of various type of engine capacity vehicles.
The tax is adjustable which can be adjusted against total tax liability on filing of return by a non-filer.
Following are the withholding tax rates on purchase of motor vehicle:

Engine Capacity Filer Non-Filer
Up to 850CC Rs7,500 Rs10,000
851CC to 1,000CC Rs15,000 Rs25,000
1,001CC to 1,300CC Rs25,000 Rs40,000
1,301CC to 1,600CC Rs50,000 Rs100,000
1,601CC to 1,800CC Rs75,000 Rs150,000
1,801CC to 2,000CC Rs100,000 Rs200,000
2,001CC to 2,500CC Rs150,000 Rs300,000
2,501CC to 3,000CC Rs200,000 Rs400,000
Above 3,000CC Rs250,000 Rs450,000