LAHORE: The Punjab Excise and Taxation Department has decided to write a letter to the federal government to end advance taxes on vehicles registration and transfers.
The Secretary Excise Dept will post a summary on recommendation of advance tax elimination. The Excise and Taxation Department is facing huge revenue shortfall due to heavy taxes on registration of new vehicles and transfer of ownership. Other provinces also have reservations on these taxes. The FBR has imposed advance tax from July 1, 2014 on new vehicles registration and transfer of ownership of used and old vehicles.
The federal government has imposed advance tax of Rs 10,000 on registration of new vehicles from 600cc to 850cc and same amount of tax on transfer of property of the vehicles used upto five years. On 581cc to 1000cc vehicles Tax on registration of new vehicles is Rs 20,000 -25,000 and same on transfer of old vehicles. Rs 50,000-100,000 tax has been imposed on registration and transfer of vehicles varied from 1000cc to 1300cc from 1601cc to 1800 cc.
Tax imposed by FBR is from Rs 100,000 to 200,000. 2000cc to 2500 cc vehicles are paying Rs 200,000 to Rs 300,000. More than 2500cc vehicles on registration and transfers are paying Rs 300,000 to Rs 5,00,000 on registration and transfer.
The same situation is in the field of token tax which is based on filer and non filer citizens. Taxes on registration, transfers and token taxes have increased which is decreasing the revenue of the department. After this, the Excise Dept is facing loss of billions of rupees loss from July 2014 to now and it compels the Government of Punjab to inform the federal government on reservations.
The Punjab Government has decided to write a recommendation letter on reservation of heavy taxes which is causing a fiscal damage to the Excise Dept. Secretary Excise and Taxation Punjab Ali Tahir will write this recommendation letter to the Federal Board of Revenue.