ISLAMABAD: The Federal Board of Revenue completed spadework for linking the Excise and Taxation Departments of all the four provinces with its data bank to collect motor vehicles data for registration of vehicle owners and maintaining withholding tax deduction data.
Now as soon as all the provincial excise & taxation departments give the go-head, the FBR will set up the requisite electronic links for collecting motor vehicles data.
As per details, the FBR officials and Senior Pral Karachi, Lahore, Islamabad, Peshawar and Quetta Manager (Operations) have met the officials concerned of all the provincial excise & taxation departments to finalise modalities for the electronic linkage between the provincial departments and the FBR. All relevant officials have submitted their requisite reports on the issue to the FBR for necessary action.
It is to be noted that the electronic transmission of data pertaining to motor vehicle registration to FBR was discussed during a meeting of the FBR Chairman with provincial excise & taxation secretaries. On the occasion, the stakeholders also developed a consensus to electronically maintain data of the newly-registered vehicles for documentation vis-à-vis deduction of tax. It was also decided to develop an electronic link between the FBR and provincial E&T departments to facilitate the efforts for broadening tax net.
The FBR has already informed the provincial excise & taxation departments about the withholding income tax rates on registration of new locally-manufactured vehicles and withholding tax collected along with motor vehicle tax on old ones under section 234 & 231B of Income Tax Ordinance, 2001.
