Government has allowed non-filer to purchase new cars up to 1300cc, but proposed to enhanced the rates of withholding tax by 50% of existing rates as well.
In the recent mini budget now the non-taxpayers would have to pay Rs.15,000 instead of Rs.10,000 withholding tax on registration of new cars with the engine capacity upto 850cc. Similarly, Rs.25,000 to Rs.37,500 having engine capacity from 850cc to 1000cc. Registration of new cars having engine capacity from 1000cc to 13000cc, the non-taxpayers would have to pay Rs.60,000 instead of Rs. 40,000 as withholding tax.
The non-taxpayers would not be eligible to purchase a vehicle of more than 1300cc.
Withholding tax on registration of new cars for the filers would remain unchanged. The Filers would pay Rs.10,000 against 850cc engine car. From 850cc to 1000cc, tax filer would pay Rs.20,000 and from 1000cc to 1300cc cars of engine capacity the filer have to pay Rs.30,000 as withholding tax while its registration.
The increases of rates in withholding tax just to regularize the non-tax filers into Federal Board Revenue (FBR) registration net for the wealth of country and its citizens.
In the recent mini budget the government has proposed/targeted imported luxury cars/jeep having 3000cc to enhance the rate of Excise Duty from 20% to 25% and 30% exceeding 3000cc. It is proposed to levy Excise Duty at 10% on locally manufactured/assembled cars/Jeeps with engine capacity exceeding 1800cc.