The government has significantly increased the withholding tax (WHT) on new vehicle registration in order to control the ever-increasing undocumented ‘own money on cars.
Many people have been surprised by the 100 percent increase in car registration and transfer fees.
The withholding tax on cars under 1000cc has been raised to Rs100,000 from Rs50,000.
However, the withholding tax on cars with displacements of 1000cc and above has been raised from Rs100,000 to Rs200,000.
The tax authorities have recently begun collecting withholding tax at the time of new vehicle registration.
The Punjab Excise and Taxation Department has begun collecting taxes in accordance with the revised list issued by the Federal Board of Revenue (FBR).
