The Federal Board of Revenue—FBR has given a clarification that no withholding tax has been imposed on rickshaws and motorcycles under the section 231B and 234 of Income Tax Ordinance-2001
The news that is going viral and is circulating regarding the tax imposition on motorcycles and auto-rickshaw by FBR is without any basis and wrong.
A rumour surfaced that FBR had imposed a withholding tax on the registration of the motorcycles and rickshaws, increasing the registration cost of bikes by Rs.3,400 to Rs.20,900.
The revenue board strongly denies this baseless news and has clarified that no withholding tax would be charged on either motorcycles or rickshaws.
A member of the FBR’s IR (policy)—Hamid Ateeq Sarwar said that the application of any revision in motor vehicle taxes would not be for the ones in the lower-income division.
He further said that the mention of withholding tax on motorcycles could have been a personal comment of an officer but emphasized that it was not the policy of FBR.
The tax is charged only on the cars as per the Income Tax Ordinance-2001.
The government is working on providing facilities to the less income earning segments of the society.