Mods, please close if this a repost....does this mean we have to pay an additional amount on top of what we already had to pay at time of registration or what??..
http://www.dawn.com/2008/08/15/ebr9.htm
KARACHI, Aug 14: The Federal Board of Revenue has imposed tax on registration of new cars of different engine powers ranging from Rs750 to Rs50,000, sources at the Motor Vehicle Department revealed.
The slab of new tax varying with engine power is: 800cc - Rs750; 851 to 1,000cc - Rs10,500; 1001 to 1300cc - Rs13,875; 1301 to 1600cc - Rs16,875 and from 1601 to 1800cc - Rs22,500 and 2000cc and above Rs50,000.
The new tax first time introduced on registration of vehicles was supposed to come into effect from July 1, 2008 but the MVR department has yet to receive the required notification. The new tax is in addition to the tax charged annually along with motor vehicle tax paid by the car owners.
The tax will be reduced by 50 per cent after five years of registration of a vehicle and would be totally waived after 10 years.
The motor dealers said that new withholding tax on cars of all capacity would further increase the prices of cars in the local market. They said that the new government had announced its policy to tax only luxury cars but it has not spared even cars used by the middle-income people. This would further aggravate the transport problem being faced by commuters in big cities.
Meanwhile, the FBR has also increased withholding tax rates charged on vehicles along with motor vehicle tax every year.
The tax on 1,000cc cars has been raised from Rs500 to Rs750; 1001 to 1199cc cars from Rs750 to Rs1,250; 1200 to 1299cc cars from Rs1,250 to 1,750; 1300 to 1599cc from Rs1,750 to Rs3,000; 1600-1999cc from Rs3,000 to Rs4,000 and 2000 cc and above from Rs4,000 to Rs8,000.
Meanwhile, MVR Director Shoaib Siddiqui told Dawn that the July 2008 figures showed that registration of vehicles has declined by about 50 per cent. The break-up of registration in the first month of 2008-09 shows that number of cars registered was 3,558 in July against 6,106 in the same month last year.
The number of motorcycles registered is 11,078 against 11,646 last year.
The total number of vehicles registered in July was 15,073 against 17,825 registered in the same month last year.
It may be pointed out that registration of new cars witnessed a declining trend since last year due to high mark-up and strict conditions laid down for car leasing by commercial banks and above all a slowdown in economy.
The department registered 203,697 vehicles of all types during 2007-08 compared to 187,854 registered in the previous year. The registration of cars declined by 14 per cent in the outgoing fiscal year compared to the previous year.