Tax rate for token payments, registration of cars not changed: FBR

Federal Board of Revenue (FBR) on Tuesday refuted the perception that rate of tax for token payments and registration of cars has been changed in the Financial Budget 2019-20.

According to a statement issued by FBR, it has been addressed that ‘after verification it was noticed that this misperception was due to a typographical mistake which was rectified in the Finance Act-2019’. Tax rate for the token payments and registration of cars will remain the same that was charged in the previous year.

“There is no enhancement or reduction in the tax rate,” reads the statement by FBR.

FBR’s statement also clarified that no tax has been levied on private cars on the basis of seating capacity.

However, non-filers will have to pay double tax than the people who are on the Active Taxpayer List (ATL).

The statement further reads that ‘any person who thinks he is not eligible to pay tax can inform the FBR beforehand who can be considered for exemption from the payment of this additional tax’.