ISLAMABAD: Government of Pakistan has reduced the advance income tax on transfer of ownership of vehicles for both filer and non-filers but increased the annual token tax up to 25 pec cent for non filers.
Federal Board of Revenue (FBR) issued to provincial and federal excise and taxation departments on Monday that It kept the advance income tax on registration and purchase of new cars unchanged for the new fiscal year 2015-16.
The government reduced the advance income tax rates after phenomenally increasing it in the last fiscal year, which discouraged car owners from getting their vehicles transferred, raising security concerns.
The new rates are expected to cause a revenue loss of Rs500 million in the new fiscal year.
