The Federal Board of Revenue (FBR) has imposed additional taxes on the selling of new cars within 90 days of purchase.

Detailing about the new tax imposed, FBR said that the government has decided to impose close to Rs200, 000 additional withholding tax on the purchase of new cars.

For 600 to 1000cc cars, there will be an additional WHT of Rs50, 000, while for 2000cc cars there will be Rs100,000 tax. While WHT of Rs 200,000 will be charged on any car above 2000cc.

According to FBR the new tax imposed to control ‘On Money’ practice and to meet the tax target set for the FBR by the government. The tax has already been approved by the federal cabinet.

The tax will come into effect from January 1, 2021, till June 30, 2021.