ISLAMABAD: The coalition government has increased the advance tax on vehicles with engine capacity of 1600CC or above, ARY News reported on Friday.
According to details, the PML-N-led government has unveiled the fiscal budget for 2022-23. Under the new budget, the government has doubled the tax on cars with engine capacity of 1600CC or above.
Speaking on the National Assembly floor, Miftah Ismail said: ” In continuation of our policy to shift the burden of tax on the rich class, advance tax on motor vehicles exceeding 1600cc is proposed to be increased.”
Read More: BUDGET 2022-23: FULL TEXT OF MIFTAH ISMAIL’S SPEECH
“Furthermore, advance tax shall also be collected at the rate of 2 percent of the value in cases of high-value hybrid and electric vehicles,” he added.
The finance minister added, “Additionally, the rate of tax for non-filers shall be enhanced to 200 percent from the current 100 percent.”
Under the new budget, a motorist owning a car of up to 850cc would have to pay Rs10,000 under registration tax.
For vehicles above 850cc and up to 1000cc, the tax is Rs20,000 while the users of cars between 1001cc to 1300cc would pay a sum of Rs25,000. However, the tax figure will exactly double if an individual opts to buy a vehicle that is above 1300cc.
The government has introduced a tax of Rs50,000 for vehicles with engine capacity ranging from 1301cc to 1600cc, while vehicles above 1601cc to1800cc, the tax is Rs150,000.
The appreciation in the registration tax will continue for the people seeking expensive and luxurious options above 1800cc.
“Provided that in cases where engine capacity is not applicable and the value of the vehicle is Rs5 million or more, the rate of tax collectable shall be 3% of the import value,” the Finance Bill read.
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