‘Tax on token payments, registration of cars remains unchanged’

Federal Board of Revenue (FBR) has strongly rebutted the perception that the rate of tax for token payment and registration of cars has been changed in the Financial Budget-2019.

“After verification, it was noticed that this misperception was due to a typographical mistake which was rectified in the Finance Act-2019,” a statement issued by the FBR reads. “The rate of tax for 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 further stated 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 so that he/she could be considered for exemption from payment of this additional tax, the statement concluded.