Tax on sale and purchase of used vehicles or not? FBR clarifies ‘confusion’
The revenue body added that it held consultations with the Chamber of Commerce.
The Federal Board of Revenue (FBR) announced it has ‘extended concessions’ instead of levying more taxes for the sale and purchase of used vehicles. The announcement cleared up the confusion that started after the amendment in Sales Tax rules 2006.
FBR noted that initially, according to the law the tax amount was higher. Prior to the amendment, the sales tax of 17 percent was levied on the total selling amount.
The revenue body added that it held consultations with the Chamber of Commerce. A clause in the Finance Act 2020 has been tailored to deal with the taxation formula on sales and purchase of used vehicles. The aim of the clause has been described as a way to encourage the sale and purchase of used vehicles.
This facility, however, is not available for unregistered sellers. This concession has only been offered to those who have registered themselves.
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