Transfer fees and holding tax is a one time fees you pay on the purchase of either your new or old car. The fee ranges from in-between 10,000 to 450,000 rupees. But now though, Government has introduced some changes which according to Newspapers, will change everything for consumers and the Excise Department as well.
According to the newspapers, after July 1st, the holding tax bum (bomb) will go live for the live and make the quantity of buying and selling of new and old cars low while making the imported cars very expensive. After the implementation is complete, the newspaper say that the counters of Excise Department will shut down due to low volume and also make a significant dent on Excise Department’s revenue.
They go on to say that even showroom would shut down as you’ll people would have to pay holding tax every time a buyer or seller goes to transfer the vehicle. This is pure sensationalism and giving hype but though, we agree that the damage would be great but not so much as to shut down counters and show room as all of them are known to transfer the shock to the buyers or maybe, who knows.
Holding tax was only a one time fees before but from now on, you’ll have to pay it every time you transfer your vehicle. The charts are provided below so you can check how much are you eligible to pay.
Furthermore, income tax ration has also been increased.
For "Advance Tax on Purchase of private motor car and jeep", Amount calculation for 2nd category(851cc to 1000cc) is wrong. Please check.
This so called "Holding" tax is refundable isn't it, up on filing your IT returns at the end of fiscal year?
If I have understood it correctly, it was there before as well but the amount has been increased and they have categorized the payer(s) in to filers and non-filers with the latter made to pay double the amount…?
Its your vote power .Sher ban ka GEO
Ganja Government is crazy. Musharraf and PPP regime was better.
I vl not pay such high tokens for this year to filthy Government. We are not responsible for their pockets.Its too much now,
Ya Allah Jan Chora Humari In Xalim Hukmarno sey!
lanat tull kabirra
Amer, I have been filing taxes for years. I have never received the refund that was due to me. That's not about to change.
Usman Ilyas if you are employed with a company, you can ask for a refund from the employer. Just need to provide them with the documentary evidence (e.g. receipts) and they will refund you directly and submit to FBR only the remaining tax amount at the end of financial year. I have been getting refunds this way in the past. Very simple and convenient. No need to ask for refund up on filing the tax return.
Amer Iqbal , you might think so, but you'd be wrong. I already did that. My employer is a public sector organization and is "not allowed" to adjust payments of witholding tax. What do you think of that?
Usman Ilyas you may be right since my employer is a private sector org… Although I believe, it doesn't say anywhere in the FBR documents that only private sector employers are allowed to do that. Its just unfortunate that our public sector org. not supportive to their employees…
Amer Iqbal I think there may be a concern of potential involvement in tax default. Anyway, I am glad to hear that at least some people don't have this problem.
haha I will have to pay 1lac tax on Daewoo Racer which I bought for 2.5lac lolz……