FBR circulated the withholding income tax rates on registration of new locally made vehicles and on used vehicles just to make sure all relevant authorities of the government are on the same page and using the correct rates, but since FBR was at it, they also revised the WHT rates.
The updated WHT rates for used cars are as follow;
In the case of other private motor cars with engine capacity of up to 1000cc, withholding tax rate would be Rs 750; up to 1001cc to 1199cc, Rs 1250; up to 1200cc to 1299cc, Rs 1750; up to 1300cc to 1599cc, Rs 3000; up to 1600cc to 1999cc, Rs 4000 and up to 2000cc and above, tax rate would be Rs 8000.
In the case of lump sum payment, up to 1000cc, tax rate is Rs 7500; up to 1001cc to 1199cc, Rs 12,500; up to 1200cc to 1299cc, Rs 17500; up to 1300cc to 1599cc, Rs 30000; up to 1600cc to 1999cc, Rs 40000 and up to 2000cc and above, tax rate would be Rs 80000. Under section 231B of the Income Tax Ordinance 2001, (purchase of motor car) up to 850cc, tax rate is Rs 10000; 851cc to 1000cc, Rs 20000; 1001cc to 1300cc, Rs 30000; 1301cc to 1600cc, Rs 50000; 1601cc to 1800cc, Rs 75000; 1801cc to 2000cc, Rs 100000 and above 2000cc, tax rate is Rs 150000, the FBR added.
Courtesy: Business Recorder
For new cars, the WHT rates are as follows:
Up to 850cc engine capacity, amount of tax Rs 10,000; 851cc to 1000cc engine capacity, amount of tax Rs 20,000; 1001cc to 1300cc engine capacity, amount of tax Rs 30,000; 1301cc to 1600cc engine capacity, amount of tax Rs 50,000; 1601cc to 1800cc engine capacity, amount of tax Rs 75,000; 1801 cc to 2000cc engine capacity, amount of tax Rs 100,000 and above 2000 cc engine capacity, amount of tax Rs 150,000.
Courtesy: Business Recorder
