The Federal Board of Revenue has completed the exercise to electronically link all four provincial excise & taxation departments with the FBR databank to collect motor vehicles data for registration of vehicle owners and maintaining withholding tax deduction data.
Sources told Business Recorder on Monday that the FBR officials and Senior Manager Operations Pral Karachi, Lahore, Islamabad, Peshawar and Quetta have met the provincial excise & taxation departments to finalise modalities to establish electronic linkage between the provincial departments and the FBR. All relevant officials have submitted their requisite reports on the issue to the FBR for necessary action.
Following clearance from all provincial excise & taxation departments, the FBR will set up the relevant electronic links for collecting motor vehicles data.
Details revealed that the issue of motor vehicle registration-electronic transmission of data to FBR was discussed threadbare during the last meeting of the Chairman, FBR with secretaries, provincial excise & taxation departments. A consensus was developed among the stakeholders to electronically maintain data of the newly registered vehicles for documentation as well as deduction of tax purposes. It was also agreed that the FBR will obtain an electronic link with the provincial excise & taxation departments to facilitate broadening of tax-base exercise.
CEO Pral had directed its field formations to visit the Director General, Excise & Taxation Department of the respective Province/Islamabad Capital Territory, Islamabad and conduct a study regarding electronic communication of motor vehicles data from the respective excise & taxation department to FBR with a view to ensuring that the data can constitute the monthly withholding tax statement and may be useful for computation of tax deducted.
The FBR has already informed the provincial excise & taxation departments about the withholding income tax rates on registration of new locally manufactured vehicles and withholding tax collected along with motor vehicle tax on old ones under section 234 & 231B of Income Tax Ordinance, 2001.
Source: Business Recorder