Vehicle tax for non-filers enhanced

ISLAMABAD: The Federal Bureau of Revenue (FBR) has raised token tax for non-filers to Rs1200 on 1000cc and Rs30,000 on 2000cc and above cars with effect from current financial year 2015-16.
According to a notification issued by FBR and sent out to all Post Offices and Excise departments of the provincial governments, on registration of cars and transfer of ownership, the tax rate was reduced for filers of income tax returns while token tax for non-filers was increased through Finance Bill 2015-16 approved by Parliament.
According to revised tax rates, the token tax for filers for up to 1000cc car was reduced to Rs800 while it was raised up to Rs1200 for non-filers. For 1001cc to 1199cc car the token tax for filers will be Rs1500 while for non-filers it will be Rs4000.
For 1200cc to 1299cc capacity private cars the tax rate for filers will be Rs1750 while for non-filers it has been increased to Rs5000. For 1300cc to 1499cc car, the token tax rate including withholding tax will be Rs2500 for filers and Rs7500 for non-filers; for 1500cc to 1599cc vehicles it will be Rs3750 for filers and Rs12000 for non-filers; for 1600cc to 1999cc, the tax rate for filers will be Rs4500 while non-filers will have to pay Rs15000.
On 2000cc and above cars the token tax for filers will be Rs10,000 while for non-filers it will be Rs30,000.
According to DG (Withholding Taxes) FBR, certain amendments have been made in the Income Tax Ordinance, 2001, through the Finance Act, 2015. The amendments made in the provisions of Income Tax Ordinance, 2001 and the latest withholding tax rates under various sections are applicable w.e.f. July 1, 2015. Major provisions of withholding tax being dealt by the Excise and Taxation Department are section 231B advance tax on private motor vehicles (i.e. withholding tax on registration of vehicles) and section 234 tax on motor vehicles (i.e. withholding tax along with token tax on vehicles). The tax rates for the section 231B and 234 as per Finance Act, 2015 would be applicable from July 1, 2015.
Under section 231B (Advance tax on purchase, registration and transfer of motor vehicles), engine capacity up to 850cc, tax rate would be Rs10,000 (filer), Rs10,000 (non-filer); 851cc to 1000cc, Rs.20,000 (filer), Rs25,000 (non-filer); 1001cc to 1300cc, Rs30,000 (filer), Rs40,000 (non-filer); 1301cc to 1600cc, Rs50,000 (filer), Rs100,000 (non-filer); 1601cc to 1800cc, Rs75,000 (filer), Rs150,000 (non-filer); 1801cc to 2000cc, Rs100,000 (filer), Rs200,000 (non-filer); 2001cc to 2500cc, Rs150,000 (filer), Rs300,000 (non-filer); 2501cc to 3000cc, Rs200,000 (filer), Rs400,000 (non-filer) and above 3000cc engine capacity, the tax rate would be Rs250,000 (filer) and Rs450,000 (non-filer).
The rate of tax under sub-section (2) of section 231B shall be as follows:
Up to 850cc tax rates would be Rs0 (filer), Rs5,000 (non-filer); 851cc to 1000cc, Rs5,000 (filer), Rs15,000 (non-filer); 1001cc to 1300cc, Rs7,500 (filer), Rs25,000 (non-filer); 1301cc to 1600cc, Rs12,500 (filer), Rs65,000 (non-filer); 1601cc to 1800cc, Rs18,750 (filer), Rs100,000 (non-filer); 1801cc to 2000cc, Rs25,000 (filer), Rs135,000 (non-filer); 2001cc to 2500cc, Rs37,500 (filer), Rs200,000 (non-filer); 2501cc to 3000cc, Rs50,000 (filer), Rs270,000 (non-filer) and above 3000cc tax rate would be Rs62,500 (filer) and Rs300,000 (non-filer).
Under section 234 (tax on motor vehicle), in the case of goods transport vehicles, tax rate would be Rs2.5 per kg of the laden weight (filer) and Rs4 per kg of the laden weight (non-filer).
1(A) Transport vehicle with laden weight of 8120 kg or more after a period of ten years from the date of first registration passenger transport, the tax rate would be Rs1200 per annum.
(2) In the case of passenger transport vehicles plying for hire, seating capacity: Four or more persons but less than 10 person, tax rate would be Rs50 (filer), Rs100 (non-filer); 10 or more persons but less than 20 person, Rs100 (filer), Rs200 (non-filer); 20 persons or more, tax rate would be Rs300 (filer) and Rs500 (non-filer).
(3) Other private motor cars with engine capacity of up to 1000cc, tax rate would be Rs800 (filer), Rs1200 (non-filer); 1001cc to 1199, Rs1,500 (filer), Rs4,000 (non-filer); 1200cc to 1299cc, Rs1,750 (filer), Rs5,000 (non-filer); 1300cc to 1499cc, Rs2,500 (filer), Rs7,500 (non-filer); 1500cc to 1599cc, Rs3,750 (filer), Rs12,000 (non-filer); 1600cc to 1999cc, Rs4,500 (filer), Rs15,000 (non-filer) and 2000cc & above, Rs10,000 (filer) and Rs30,000 (non-filer).
In view of thereof, it is requested that all the field offices may be directed to deduct withholding tax at the revised rates including tax u/s 231B and u/2 234 of the Income Tax Ordinance, 2001, the statement said.