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A 100% increase in the automobile registration tax has been approved

A 100% increase in the automobile registration tax has been approved

The Senate Standing Committee on Finance has approved a 100% increase in the non-filer car registration tax and urged the Federal Board of Revenue (FBR) to bring any legislation in the form of a bill rather than ordinances.

On Saturday, the Senate panel met under the chairmanship of Saleem Mandviwalla. Senators Sadia Abbasi, Talha Mehmood, Zeeshan Khanzada, and Anwarul Haq Kakar, as well as FBR Chairman Asim Ahmad and other policy and administrative officials, attended the meeting.

Pakistanis would have to pay a 1% capital value tax (CVT) on their declared property in Dubai, London, and New York, according to FBR officials.

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The FBR intends to raise Rs10 billion by imposing a 1% capital value tax (CVT) on Pakistanis’ liquid foreign assets, another Rs8 billion by imposing a 1% CVT on Pakistani residents’ foreign immovable properties, and another Rs10 billion by increasing advance income tax on luxury vehicles over 1600cc.

The committee chairman told FBR officials that any legislation should be presented in the form of a bill rather than an ordinance.

During his briefing to the meeting, the FBR chairman stated that the problem of reimbursements from the Pakistan Pharmaceutical Manufacturers Association (PPMA) had been settled. The refunds have not been made for the past four and a half months, according to the PPMA spokesperson.

The vehicle registration tax for non-filers has been raised by 100%, according to FBR authorities. Small automobiles, whether owned by filers or non-filers, should not be taxed, according to Mandviwalla.

The FBR chairman, who was opposed to the attitude, stated that they wanted to “record the economy” and approved a 100% increase in the vehicle registration tax for non-filers.

He also stated that a non-filer would be required to pay a 5% tax on the acquisition of a home.
The FBR authorities also pointed out that a pilot’s remuneration included his flying allowance. Previously, the flying allowance was subject to a 7.5 percent tax.

The committee chairman objected, claiming that a pilot’s income was already taxed. By combining the flying allowance with the wage, the panel was able to avoid taxation.

The exemption from capital gains tax on property for retired and current army personnel is being phased out, according to revenue board members. The exemption for government personnel was also being eliminated. The committee endorsed the recommendation.

The Supreme Court tax fund had been exempted from taxation, according to the Senate. Senator Sadia stated that it was the government’s responsibility, not the apex court, to expand water reserves.

Private NGOs, including some foreign ones, are already tax-exempt, according to FBR authorities.
In the Finance Bill 2022, the standing committee considered the suggestions for income tax, sales tax, and customs tax that were submitted by the departments concerned. It also discussed the proposed amendments to the Islamabad Capital Territory Ordinance.

RELATED: Budget 2022-23: Tax relief to salaried class taken back on IMF’s demand

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Business

Sibtain Ali is a Senior Editor Business at Pakistan Lounge and joined in October 2021. Formerly business editor at a renowned International News website

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