FBR imposes 17pc tax on profit made on second hand cars

The  Federal Board of Revenue (FBR) has made it compulsory for car dealers to conduct transactions through banking channels besides barring them from collecting sales tax from the buyer.

Some car dealers are of the opinion that the new tax will burden people who are fighting to recover from the lack of business over the last five months, however, others believe that the 17pc sales tax won’t hinder business activities.

It is pertinent to mention here that the government has fulfilled another Financial Action Task Force (FATF) requirement by making the use of banking channels mandatory for such transactions.