FBR Denies Imposing Withholding Tax on Rickshaws and Motorcycles

withholding tax

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.

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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.

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