The Federal Board of Revenue (FBR) has clarified that rate of tax has not been changed in the financial budget-2019 for the token payment and registration of cars. “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,” the FBR said and 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. According to the FBR, after verification it was noticed that this misperception was due to a typographical mistake which was rectified in the Finance Act-2019.
FBR further informed that no tax had been imposed on private cars depending on their seating capacity.
But the people who have not filed for the tax returns would have to pay double tax than the people who are on the Active Taxpayer List—ATL.
Any person who thinks and considers that he is not eligible for paying taxes could inform FBR before and they would be considered for exemption from this double tax.