ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that levy imposed on refurbished second hand vehicles is restricted to 17pc of value addition and this relief is available to only registered persons in sales tax.
The FBR on Saturday issued a clarification regarding levying of 17pc sales tax on resale of used and refurbished vehicles. The FBR clarified that the existing law charged sales tax on full sale value which was harsh and excessive.
On the request of the business community, and after seeking support of major chambers of commerce of the country, a clause was added in the Finance Act to provide relief and to encourage refurbishing of second hand vehicles.
According to the statement, this relief is available to only registered persons in sales tax and is restricted to 17pc of value addition made by such players. No unregistered person can deduct or demand such sales tax from a buyer.
The statement further clarified that the rules have been finalized now.
Why govt is not allowing import of refurbished cars? It was a good option with people. A reused Yaris was much better than local assembled Toyota corolla or Honda Civic.
True but the problem is generation x who is controlling nation in shape of bureaucracy. They are less aware of the current problems and believe know everything.
Agreed why they are doing this suck Govnm
Because Pakistan cannot afford to send Dollars out of its local market. This effects the PKR Forex rate and Rupee goes under stress.
Devaluation of PKR is the reason imports have been halted.
Imposition of unnecessary laws and red tapism is the only problem of this country. Typically, every one is paying taxes in terms of direct and indirect, but state claims only few who pays their taxes to state, hence, demanding difficult laws to gain revenue from such illiterate nation. Hilarious.
Bilal Shafiq …what it has to do with nation when you are calling it illiterate…..illiterate is the Govt authorities who think this country is been looted by the nation and the looters are allowed freely to flew off the country…what a shame for this Govt…since PTI (nachnay waly party) has ruined this country from every angle…whether it is property or car or any good the people are buying it is the nation who is been badly bashed by every political party….
COME ON PAY. SAVE THIS OUR COUNTRY FROM BLACK ECONOMY..IF U LOVE UR HOME LAND TRY TO SUGGEST POSITIVE IDEAS,,REGARDING IMPORT OF SECOND HAAND CARS ALL R IN FAVOUR OF IT..THESE MULTI NATIONAL COS R FLEECING AND DO NOT CARE OF customers,.FOR THE PAST TWO DECADES WHY HAVENT THEY MANUFACTURING ALL PARTS OF CARS INSTEAD OF IMPORTING KNO..WHO WILL MAKE IT COMPULSORY TO PUT UP MONEY TO DO SO..?
COME ON PAY. SAVE THIS OUR COUNTRY FROM BLACK ECONOMY..IF U LOVE UR HOME LAND TRY TO SUGGEST POSITIVE IDEAS,,REGARDING IMPORT OF SECOND HAND CARS ALL R IN FAVOUR OF IT..THESE MULTI NATIONAL COS R FLEECING AND DO NOT CARE OF customers,.FOR THE PAST TWO DECADES WHY HAVENT THEY MANUFACTURING ALL PARTS OF CARS INSTEAD OF IMPORTING KNO..WHO WILL MAKE IT COMPULSORY TO PUT UP MONEY TO DO SO..?
Government must allow to import old vehicles which is stronger and better then new 2020 vehicles…
Please clarify is this tax applicable on individuals for example one person selling car to other person?
Tariq…..No. This tax is not applicable to individual selling his car to anyone. This is applicable only to commercial dealers.
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Sales Tax will be the differential of the sales and purchase prices. The law is applied to curb the OWN (blackmail tax) charged unlawfully by dealers and distributors but that is always charged in cash, which cannot be restricted and clamped down upon.
Deliberate loopholes are kept gaping wide open for Sugar, Tea supplies to the relevant departments.
Asalam o alkium
When the country is running on sood money how would you expect goverment to make the right decision on the right them, when you are at war with ALLAH because of sood how would you prosper, as mentioned in Quran about Riba (sood) I don’t Wana say much just want to say always look for the route cause of issues
Jazak ALLAH
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