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FBR updates WHT rates on registration, transfer of motor vehicles

FBR updates WHT rates on registration, transfer of motor vehicles

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rates on registration and transfer of motor vehicles for tax year 2021.

The FBR updated the withholding tax card 2020-2021 (up to June 30, 2020) incorporating amendments made to Income Tax Ordinance, 2001 through Finance Act, 2020.

The withholding tax rate under Section 231B on private motor vehicles

Under this section motor vehicle registration authority shall collection withholding tax from persons getting new locally manufactured motor at the time of vehicle transferred in their name at the time of registration of new motor vehicle.

The withheld tax shall be adjustable against liability.

The tax rate shall be increased by 100 percent for persons not appearing on the Active Taxpayers List (ATL).

The withholding tax rates under this section shall be:

Engine Capacity            For ATL      For Non-ATL

Up to 850CC                 Rs7,500      Rs15,000

851CC to 1000CC         Rs15,000   Rs30,000

1001CC to 1300CC      Rs25,000   Rs50,000

1301CC to 1600CC      Rs50,000   Rs100,000

1601CC to 1800CC      Rs75,000   Rs150,000

1801CC to 2000CC      Rs100,000 Rs200,000

2001CC to 2500CC      Rs150,000 Rs300,000

2501CC to 3000CC      Rs200,000 Rs400,000

Above 3000CC              Rs250,000 Rs500,000

Withholding tax under Section 231B(1A)

Every leasing company, scheduled bank, investment bank development finance institution, non-banking finance institution, MODARBA (Sharia compliant or under conventional mode) shall collect withholding tax from lessee at the time of lease.

The withheld tax shall be adjustable.

The tax rate shall be 4 percent of the value of motor vehicle on leasing of motor vehicle to persons not appearing in the Active Payers’ List.

The withholding tax rates under Section 231B (2)

Motor Vehicle Registration Authority shall collect withholding tax from person transferring the ownership / registration at the time of transfer.