Fixed tax slapped on over 2,000cc vehicles
Business
The move is part of the measures to enhance revenue collection
ISLAMABAD (Web Desk) – In an attempt to enhance revenue collection for meeting one International Monetary Fund (IMF) condition, the government went for increasing tax on registration of luxury vehicles [over 2,000cc], as it amended the Finance Bill 2023-24 to impose additional taxes of Rs215 billion.
For the vehicles falling within the 2,100cc-2,500cc category, there is now a six per cent fixed tax which would be calculated on the basis of its price/value. The tax rate is 8pc for the 2,501cc-3,000cc bracket which reaches 10pc for over 3,000cc vehicles.
Finance Minister Ishaq Dar on Saturday, in a bid to seal the IMF deal, said the government had agreed to impose new taxes worth Rs215 billion.
However, he added, the move would not affect the poor. “We’ll reduce expenditures by Rs85 billion and this reduction will not affect salaries and pensions,” he added.
Other measures taken under the IMF pressure included reversing its decision regarding introduction of amnesty scheme for expats who had been allowed in the budget proposals to bring up to $100,000 without declaring their source of income.
At the same time the government also removed all the restrictions imposed on imports – a move that had successfully reduced the trade deficit significantly.
