KARACHI: Pakistan Automotive Producers Affiliation (PAMA) has urged the Federal Board of Income (FBR) to not levy withholding tax (WHT) on domestically manufacturing automobiles within the Funds 2023-24, saying it might badly impression their gross sales. Presently, withholding tax is levied on the engine capability foundation which begins from Rs10,000 for a filer on as much as 850cc to 1,000cc automobiles to Rs500,000 on 3,000cc and above. In the meantime, for non-filers, it begins from Rs30,000 to Rs1.5 million, in keeping with the letter. DG PAMA mentioned a proposal was reportedly into consideration for the forthcoming price range to cost the WHT on bill worth foundation as a substitute of engine capability foundation.
“We’re requesting to not go for this proposal as this could considerably improve the fee of the WHT quantity and inevitably improve the sale worth and badly impression the sale.” The letter requested even a discount within the present engine-based WHT quantity. “We, subsequently, argue in opposition to the change of age-old follow of levy of WHT on engine capability foundation to bill worth foundation which might not solely badly impression the gross sales but in addition in opposition to the simplicity and comfort of the levy of tax.”