Sale of new cars within 90 days of purchase to be taxed

ISLAMABAD: In order to discourage the ‘On Money’ practice, the government has decided to slap tax on those selling their new cars within 90 days of the purchase.

According to details, the government decided to impose up to Rs200,000 additional withholding tax on purchasing new cars. “It is aimed at discouraging ‘On Money’ on cars,” a top official of FBR told this correspondent.

For cars up to 1000cc cars, there will be additional WHT of Rs50,000, while for 2000cc cars, there will be Rs100,000 tax.

“This is only to avoid selling cars before 90-day period,” the official said, adding that it was aimed at discouraging trading of cars.