ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that tax imposed on refurbished second-hand vehicles is restricted to 17 percent of value addition and this relief is available to only registered persons in sales tax.
On a social media website Twitter, FBR on issued a clarification regarding the levying of 17 percent sales tax on the resale of used and refurbished vehicles. The FBR clarified that the existing law charged sales tax on full sale value which was harsh and excessive.
Federal Board of Revenue (FBR) has issued clarification on the news appearing in print and electronic media regarding levying of 17 percent Sales tax on resale of used and refurbished vehicles.1/5
— FBR (@FBRSpokesperson) October 3, 2020
On the request of the business community, and after seeking support from major chambers of commerce of the country, a clause was added in the Finance Act to provide relief and to encourage refurbishing of second-hand vehicles.
On the request of business community who are engaged in such business and after seeking support of major chambers of commerce of the country, a clause was added in the Finance Act to provide relief and to encourage refurbishing of second hand vehicles.3/5
— FBR (@FBRSpokesperson) October 3, 2020
According to FBR, this relief is available to only registered persons in sales tax and is restricted to 17pc of value addition made by such players. No unregistered person can deduct or demand such sales tax from a buyer. The statement further clarified that the rules have been finalized now.
No unregistered person can deduct or demand such sales tax from a buyer. It is further clarified that only rules have been finalized now.5/5
— FBR (@FBRSpokesperson) October 3, 2020
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