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:
|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|