FAISALABAD: The Excise and Taxation Department Punjab has withdrawn two withholding taxes on the change of ownership of motorcars, providing the relief to the people.
It is likely that from today, beginning of the new financial year, the cases of transfer of cars will shapely increase after the adoption of new rates. The last financial year witnessed a heavy decline in cases of transfer owing to increased duties.
According to new rates, the cars of 850 CC are exempted from withholding tax for the tax payers. Wherever, non-tax payers are supposed to submit Rs 5000 for the ownership transfer of 850 CC cars. Earlier, all customers have to pay Rs 1000 tax for the transfer of 850cc cars.
For the car of between 850 to 1000 CC, the withholding tax for the tax payers have been reduced from Rs 20,000 to Rs 5,000 whereas for the non-tax payer, it is standing at Rs 15,000 from 25,000 last year.
For the car of between 1000 to 1300 CC, the withholding tax for the tax payers have been reduced from Rs 30,000 to Rs 7,000 whereas for the nontax payer, it is standing at Rs 25,000 from 40,000 last year.
For the car of between 1300 to 1600 CC, the withholding tax for the tax payers have been reduced from Rs 50,000 to Rs 12,000 whereas for the nontax payer, it is standing at Rs 65,000 from Rs 100,000 last year.
For the car of between 1600 to 1800 CC, the withholding tax for the tax payers have been reduced from Rs 75,000 to Rs 18,000 whereas for the nontax payer, it is standing at Rs 100,000 from Rs 150,000.
For the car of between 1800 to 2000 CC, the withholding tax for the tax payers have been reduced from Rs 100,000 to Rs 25,000 whereas for the nontax payer, it is standing at Rs 100,000 and Rs 35,000 from Rs 200,000.
