Tax rate for token payment & registration of cars not changed

KARACHI: Federal Board of Revenue (FBR) has strongly rebutted the perception that rate of tax has been changed in the Financial Budget-2019 for the token payment and registration of cars.

After verification it was noticed that this misperception was due to a typographical mistake which was rectified in the Finance Act-2019.

The rate of tax for the token payment and registration of cars is the same that was charged in the previous year. There is no enhancement or reduction in the tax rate. FBR further added that no tax has been levied on private cars on the basis of seating capacity.

However, the people who have not filed tax returns will have to pay double tax than the people who are on the Active Taxpayer List (ATL).

Any person who thinks he is not eligible to pay tax can inform the FBR beforehand who can be considered for exemption from the payment of this additional tax.