ISLAMABAD: The collection of withholding income tax from sales of new cars by manufacturers registered an increase of 28 percent during first eight months (July – February) 2020/2021 owing to lifting of restriction related to coronavirus pandemic, sources in Federal Board of Revenue (FBR) said.
The collection of withholding tax from newly manufactured motor cars increased to Rs627 million during the first eight months of the current fiscal year as compared with Rs488 million in the corresponding period of the last fiscal year.
The data is based on tax collected from manufacturers registered at Large Taxpayers Office (LTO) Karachi.
The source said that acceleration in economic activity during first eight months of the current fiscal year improved manufacturing and sales of domestically assembled motor vehicles.
The sales of locally manufactured motor cars registered an increase of 24 percent during first eight months (July – February) 2020/2021 owing to pick up in economic activity and lower policy rate.
According to data released by Pakistan Automotive Manufacturers Association (PAMA) the sales of locally manufactured motor cars increased to 113,836 units during first eight months of the current fiscal year as compared with 91,515 units in the corresponding months of the last fiscal year.
Analysts at Arif Habib Limited attributed the increase to pick up in economic activity resulting in high demand of automobiles. Further, lower policy rate also helped in growth of car sales.
