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ISLAMABAD: The advance tax at the rate of 3 percent would be collected at the time of registration of electric vehicles (E-vehicles) having value of Rs 5 million or more where engine capacity is not applicable.

The Finance Act 2023 has not specifically mentioned tax rates for the registration of E-vehicles, but according to the tax experts, the tax rate would be 3 percent in case where engine capacity is not applicable and the value of vehicle is rupees five million or more. Therefore, the electric vehicles fall within the category of such vehicles without engine capacity, tax experts added.

According to the Finance Act 2023, the value shall be in case of motor vehicle (2001cc to 2500cc and above 3000cc) – (i) imported in Pakistan, the import value assessed by the Customs authorities as increased by customs duty, federal excise duty and sales tax payable at import stage; (ii) manufactured or assembled locally in Pakistan, the invoice value inclusive of all duties and taxes; or (iii) auctioned, the auction value inclusive of all duties and taxes.

Advance tax on registration of vehicles above 2000cc hiked

Provided further that in cases where engine capacity is not applicable and the value of vehicle is Rs5 million or more, the rate of tax collectible shall be 3% of the import value as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles, Finance Act added.

Under the Finance Act 2023, the government has imposed a fixed tax on imported and locally manufactured vehicles from 2001cc to above 3000cc.

Under the new income tax slabs, the fixed rate of tax would be 6 percent of the value of a vehicle having engine capacity 2001cc to 2500cc.

The fixed rate of tax would be 8 percent of the value of a vehicle with engine capacity of 2501cc to 3000cc.

Under the third revised slab, the fixed rate of tax would be 10 percent of the value of a vehicle having engine capacity above 3000cc.

Copyright Business Recorder, 2023

Comments

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Tulukan Mairandi Jul 04, 2023 09:47am
Great. Live off advances and loans
thumb_up Recommended (0)
Builder Jul 04, 2023 12:21pm
This should be applied to non-filers, non-taxpayers only and it should be at least 20% of the auto value.
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saif Jul 05, 2023 02:16am
a gya IMF ty kha gya gareeb awam ko IMF
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