GOVERNMENT OF PAKISTAN
REVENUE DIVISION
CENTRAL BOARD OF REVENUE
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C.No.1(61)WHT/2000                                                                                                                     Islamabad, June 19, 2003
CIRCULAR NO. 03 OF 2003.
(INCOME TAX)

SUBJECT:         CONCESSIONAL RATE OF WITHHOLDING TAX FOR MORE THAN TEN YEARS OLD GOODS TRANSPORT

                         VEHICLES.

The Pakistan Goods Transport Association (Regd), Lahore was agitating that more than 10 years old goods transport vehicles, irrespective of laden weight, may be exempted from withholding tax. In this regard, meetings were held with the Association and different aspects of the issue were discussed in detail. It was finally proposed by the Association that withholding tax @ Rs.1200/- per annum may be collected on all categories of more than 10 years old goods transport vehicles with registered laden weight of 8120 kilogram or more and tax so collected should be treated as final discharge of tax liability.
 

2.         To give effect to the said proposal, amendment has been made in Division III, Part IV of the First Schedule to the Income Tax Ordinance, 2001 by inserting a new paragraph (1A) through the Finance, Act, 2003. Accordingly, withholding tax of rupees twelve hundred per annum shall be collected alongwith the token tax from the goods transport vehicles with registered laden weight of 8120 kilogram or more after a period of ten years from the date of first registration of the vehicle in Pakistan.

3.         Another amendment has been made in sub-section (4) of section 234 and, consequently, withholding tax shall not be collected alongwith the token tax in respect of goods transports vehicles with registered laden weight of less than 2030 kilograms after ten years from the date of first registration of the vehicle in Pakistan. The goods transport vehicles with registered laden weight of 2030 kilograms but less than 8120 kilograms already enjoy this facility.

4.         These amendments introduced through the Finance Act, 2003 shall take effect from the first day of July, 2003.

(Saeedullah Khan)
Secretary(WHT)