An additional tax of 200,000 has been imposed by the Federal Board of Revenue on the sell of a new car three months after it is purchased. According to media reports, this decision has been taken to curb the ‘On Money’ practice.
Those who decides to sell their new car after 90 days of purchase will now have to pay up to Rs200,000 additional withholding tax.
Here’s how much tax will be imposed on cars based on their engine.
- Rs 50,000 WHT on cars upto 1000cc.
- Rs 100,000 WHT on cars upto 2000cc
- Rs 200,000 WHT on cars above 2000cc
However, as per a report by a local media outlet this decision was taken just to meet the tax target set by the federal government for the FBR. This new tax on cars will come into effect from January 1, 2021, till June 30, 2021.