The FBR has Put a New tax on the Trade of Used Car in Pakistan

Social media and news channels are full of a new "tax" imposed by the Federal Revenue Office (FBR) on used cars. The primary concern of this new SRO is a 17% tax on transactions for registered individuals (applicants) and an additional 3% for non-registered (non-applicants). It is worth noting here that this new SRO is not for the general public, but for auto dealers, agencies, and entrepreneurs. Therefore, this will not affect the personal sale of vehicles. It is a new tax reported by the media, and there are constant reports in the news channels. Meanwhile, FBR has issued a clarification on the matter. The government agency said in a series of tweets that the current law imposes a sales tax on the full value of the sale, which is a harsh and excessive tax. He said that the office had introduced a new paragraph in the Finance Act to provide relief and encourage the restoration of used vehicles.