Tuesday, June 25, 2024

Govt Imposes Advance Tax on Vehicles that are Sold within 90 Days of Purchase

In order to prevent the ‘On Money’ trend, the government has agreed to slap tax on those selling their new vehicles, within 90 days of the purchase.

Based on the details, the government decided to impose an additional withholding tax of up to Rs. 200,000 on the purchase of new cars. “It is intended to discourage ‘On Money’ on vehicles,” the correspondent was told by a top FBR official.

There will be an extra WHT of Rs. 50,000 for cars up to 1000cc cars, while there will be a Rs. 100,000 tax for 2000cc cars.

“This is primarily to stop the sale of vehicles before the 90-day limit,” said the official. “It was intended to discourage car trading,” he added.

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