Rs112m earned from luxury tax on cars in Sindh

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luxury tax on carsThe Sindh government earned Rs111.85 million from luxury tax on cars and high-powered vehicles during July-April 2016 as compared to Rs99.12 million in the same period last year.

The luxury tax is charged at the time of registration on imported cars with engine capacity from 3000cc and above at the rate of Rs100,000. The rate of luxury tax on imported cars is 50,000 from 2000-2999cc. A minimal of Rs 5,000 tax is charged on imported cars of 1500cc to 1999cc.

Owners of locally manufactured or assembled cars from 1500cc and above have to pay Rs 5,000 luxury tax at the time of registration.

The tax levied in 2004 is in addition to withholding tax charged by Federal Board of Revenue on registration of vehicles and payment of road tax on cars from 1,000cc to 3,000cc.

Director Motor Vehicle Registration (MVR) Shahabuddin Khatri said that exemption from registration fee for a large number of vehicles has been withdrawn after it was noticed that the said vehicles were being used for commercial purposes. The exemption is now only allowed to ambulances, coffin-carriers and vans used for pick and drop of students of Madressah.

Data released by the MVR revealed that 3,853,619 vehicles were registered in Karachi during July-March 2016. This is in sharp contrast with the number of vehicles registered in major interior cities which stood at 68,208 automotives only.

The highest number of vehicles was registered in Karachi which included: private vehicles 1,225,382, pick-up vans 142,869, cars 16583, mini-trucks 16,238, taxis 46,923 and trucks 19,297, motorcycles 2,148,387, rickshaws 214,127, mini-buses 16583 and buses 6452.

In Hyderabad, 35,563 vehicles were registered: rickshaws 18,951, tractors 4,430, private vehicles 1,865, trucks 1,989, vans 4,582 and jeeps 1,215. In Sukkur, 15,605 vehicles were registered: mini-buses 2,161, vans /pickups 1,629, rickshaws 6,212 and jeeps 814.

The MVR collected Rs3,746m during July-April 2016 as compared to Rs3,039m during same period last year.

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