A life-time token tax of Rs10,000 has been fixed on 1,000cc imported cars
Islamabad (Pakistan Point News – 21st June, 2019) A Rs10,000 token tax on the registration of cars has been approved.
A meeting of Senate's Standing Committee on Finance, Revenue and Economic Affairs was held with Senator Farooq H Naik in the chair to deliberate on the Finance Bill 2019.
A life-time token tax of Rs10,000 has been fixed on 1,000cc imported cars, Rs15,00 per anum tax on 1300cc carz, Rs8,000 tax on 2000-2500cc cars and a token tax of Rs12,000 annually was fixed on cars above 2500cc.
Moreover, a token tax of Rs2000 has been imposed on cars more than 10 years old.
A punishment of 5 years sentence and Rs1 lac fine was approved over misdeclaration.
However, the suggestion to impose money laundering law on misdeclaration was rejected.
The meeting reviewed the Finance Bill 2019 as well as the clauses proposed by the Federal board of Revenue (FBR) for changes in Customs Act 1969 and Sales Tax Act 1990 and also gave direction for changing in different clauses of Finance bill 2019.
The committee also approved the proposal of Islamabad Capital Territory Tax, Ordinance 2017 and informed that taxes were increased on some services only.
The committee also reviewed the different clauses of Income tax according to the direction of the committee members.
The committee was also informed that Super Tax had been abolished from companies instead the banking sector.
Through 'Super Tax', the government is collecting Rs30 billion in terms of revenues.
The committee directed the FBR that while imposing the tax on the immoveable property, there should be classification of building and plat in order to simplifying the tax collecting system.
The committee rejected the tax proposals for the retailers, jewellers, departmental stores, electronic goods and printing press falling in the jurisdictions of Islamabad Capital Territory.
The committee also reviewed the proposal of Senator Mirza Muhammad Afridi for exemption of Federal Excise Duty on the industrial sector of merged, Federally Administrated Areas (FATA).
Senator Afridi proposed the committee to extend the tax exemption for merged FATA region for next five years to provide level playing field to the local industrial sector.
