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Tuesday April 16, 2024

PAMA urges govt not to impose WHT

By Our Correspondent
June 03, 2023

KARACHI: Pakistan Automotive Manufacturers Association (PAMA) has urged the Federal Board of Revenue (FBR) not to levy withholding tax (WHT) on locally manufacturing cars in the Budget 2023-24, saying it could badly impact their sales. Presently, withholding tax is levied on the engine capacity basis which starts from Rs10,000 for a filer on up to 850cc to 1,000cc cars to Rs500,000 on 3,000cc and above. Meanwhile, for non-filers, it starts from Rs30,000 to Rs1.5 million, according to the letter. DG PAMA said a proposal was reportedly under consideration for the forthcoming budget to charge the WHT on invoice price basis instead of engine capacity basis.

“We are requesting not to go for this proposal as this would substantially increase the payment of the WHT amount and inevitably increase the sale price and badly impact the sale.” The letter requested even a reduction in the current engine-based WHT amount. “We, therefore, argue against the change of age-old practice of levy of WHT on engine capacity basis to invoice price basis which would not only badly impact the sales but also against the simplicity and convenience of the levy of tax.”