ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that levyimposed on refurbished second hand vehicles is restricted to 17pc of valueaddition and this relief is available to only registered persons in salestax.
The FBR on Saturday issued a clarification regarding levying of 17pc salestax on resale of used and refurbished vehicles. The FBR clarified that theexisting law charged sales tax on full sale value which was harsh andexcessive.
On the request of the business community, and after seeking support ofmajor chambers of commerce of the country, a clause was added in theFinance Act to provide relief and to encourage refurbishing of second handvehicles.
Read Top Stories
According to the statement, this relief is available to only registeredpersons in sales tax and is restricted to 17pc of value addition made bysuch players. No unregistered person can deduct or demand such sales taxfrom a buyer.
