KARACHI: The automobile assemblers have urged Federal Board of Revenue to collect withholding tax on used cars as the government had to bear loss of Rs100 million in first quarter of FY14 owing to non-collection of tax on used vehicles.
Pakistan Automobile Assemblers Dealer Association (PAMADA) Chairman Iqbal Shah termed this ‘irresponsibility’ a serious blow to the national exchequer that is already facing heavy losses due to the imports of used cars by using illegitimate means.
It is pertinent to mention here that FBR had made two categories, tax filers and non-filers for the people registering their vehicles with the provincial departments. He said that for 850 CC vehicles, the Board association to receive Rs10,000 as compared to Rs 7,500 earlier, on the vehicles of 2,000 CC and above, the rate is increased from Rs50,000 to 150,000 and on 3,000 CC vehicles, it had been raised to Rs250,000. He added that for non-filers, the rates are Rs10,000 for 850 CC vehicles, Rs300,000 on 2000 CC and above whereas Rs 450,000 on 3000 CC vehicles.
Iqbal Shah said that due to increase in taxes, cars sales decreased by 3.2pc from July to September 2014-15 as compared to same period they sold last year.