ISLAMABAD: The Federal Board of Revenue (FBR) will charge 25 percent sales tax on locally manufactured or assembled vehicles, if invoice price exceeds Rs 4 million. The FBR has amended SRO 297(I)/ 2023 through a notification a SRO 370(I)/ 2024 issued here on Friday.

The new notification said that the FBR will charge 25 percent sales tax on locally manufactured or assembled vehicles, if invoice price (excluding sales tax) exceeds Rs 4 million.

An FBR official told Business Recorder that, “any type of locally manufactured vehicles of engine capacity 1400cc and above and having price Rs 4 million or above (excluding sales tax) are now chargeable to sales tax at the rate of 25 percent.”

According to the notification, 25 percent sales tax would continue to be applicable on the locally manufactured or assembled vehicles having engine capacity of 1400cc and above. The FBR will charge 25 percent sales tax on locally manufactured or assembled double cabin (4x4) pick-up vehicles.

Under the SRO 297(I)/ 2023, sales tax shall be charged, levied and paid at the rate of 25 percent of the value of the specified goods imported and their subsequent supply or the retail price, as the case may be and the sales tax shall be charged, levied and paid at the rate of 25 percent of the value of the supply of goods.

Copyright Business Recorder, 2024