Vehicle Token Tax Islamabad

[master timi]

As per excise website, now a person who owns a car (1000 cc or less) have to pay 10,000 PKR as token tax for his vehicle. This tax is termed as life time and the vehicle tax comprised as follows:

1) Token Tax (10,000 PKR - Life time)
2) Income Tax (11,000 PKR for Filers and 10,000 PKR for Non-Filers)
3) Professional Tax (1000 PKR)

Vehicle Tax (Filer) : 21,000 PKR
Vehicle Tax (Non Filer): 31,000 PKR

This is quite heavy taxation and major burden on the middle class (in my opinion):

• People who have old cars and they don't worth that much still have to pay this life time tax.
• The government is not adjusting the previously paid token taxes against. There are people who already paid token taxes for their old cars in previous years and there must be a way to adjust them accordingly.
• There is no option to choose between yearly taxes or life time tax.
  
  There are many taxi drivers and lower middle class families who really won't be able to pay 31,000 or 21,000. Is there any chance for the revision of this policy? This could really crush many low income families.
  

FEE SCHDULES

 

[master timi]

& what happens with the income tax? Do we get it back? Is it adjusted with our salary?

What happens to O.S.P, retired people and pensioners? Do they also get this income tax back?

 

[FahadBhatti]

Ajeeb faltu policy he hakoomat ki , token tax hona hee nahin chahye. Ek banda gari khareedte huye itna pesa de deta he hakoomat ko , gari mein petrol dalwatay hue phat jatee he tax de de ker, toll tax elehda. Upper se ye token tax jesee ghatya cheeze

 

[Truthstands]

No where in the world you get income tax back? Which country you living I don't know, but if you referring USA, advance tax refunded when a person file return at the end of year to prove his tax income was less.

income taxes are used for services provided to the citizen. Just pay taxes. too many nonsense arguments. Peoples think the lived in free world. Buy a 200K mobile but dont' want to pay a single penney to taxman. It's shame.

& what happens with the income tax? Do we get it back? Is it adjusted with our salary?

What happens to O.S.P, retired people and pensioners? Do they also get this income tax back?

 

[master timi]

I think I was unable to pose my question correctly. What I meant was that as a businessman or salary person, I already pay my income tax, so why do we need to pay income tax again when we are paying token for the car.

And if we are paying the income tax while paying the token for the car then can we get income tax adjustment in our salary and/or business?

No where in the world you get income tax back? Which country you living I don't know, but if you referring USA, advance tax refunded when a person file return at the end of year to prove his tax income was less.

income taxes are used for services provided to the citizen. Just pay taxes. too many nonsense arguments. Peoples think the lived in free world. Buy a 200K mobile but dont' want to pay a single penney to taxman. It's shame.

 

[Politically1981]

Yes you f

& what happens with the income tax? Do we get it back? Is it adjusted with our salary?

What happens to O.S.P, retired people and pensioners? Do they also get this income tax back?

Yes you get the income tax back when you submit tax return. People owning 1000cc and above cars are liable to submit tax return. This law has been there for years, PTI is simply implementing it in true spirit.

 

[jaypakistan]

income pe tax , bonus par us se ziada tax , har din har chez par sale price plus 13% tax. Car lety time tax , har maheena itni ziada car insurance, phir har saal $120+ phir plate sticker ka tax.. tum logon ne dia kitna tax hai life main jo itna shor machaya hua hai ?

 

[Islamabadiya]

No income tax will be given back, I think u mean that it will be adjustable or not against your upcoming income tax, I don’t know, withholding taxes are usually adjustable
Our govt will never give u back any money even if they owe you
Road tax is too much
What about those who paid life time token taxes in previous years ??

 

[Truthstands]

Yes, Indeed we do get our tax refunded when we file tax return. If we do through a knowledgeable tax lawyer then he'll get you refund. Even if we paying tax on bills, car tax or many things it's adjusted or refunded. I've seen many peoples got refunded after becoming filer.
Even in almost every country in EU Govt take advance taxes and refunded. it's the same system but we're not used to right way. Once sorted it'll run smooth.

I think I was unable to pose my question correctly. What I meant was that as a businessman or salary person, I already pay my income tax, so why do we need to pay income tax again when we are paying token for the car.

And if we are paying the income tax while paying the token for the car then can we get income tax adjustment in our salary and/or business?

 

[pkpatriot]

No where in the world you get income tax back? Which country you living I don't know, but if you referring USA, advance tax refunded when a person file return at the end of year to prove his tax income was less.

income taxes are used for services provided to the citizen. Just pay taxes. too many nonsense arguments. Peoples think the lived in free world. Buy a 200K mobile but dont' want to pay a single penney to taxman. It's shame.

Don't know what is name of this tax but
-Income tax is deducted on income at source of income
- then 4 types of duties while buying car, while buying Corolla u almost pay 4 lacs+
- then pay Token tax

The point is ...
People who have 30 years old car and paid tax every year, its not logical charge him 31000. It's unfair.
Note: I dont have to pay this so its unbiased opinion.

 

[pkpatriot]

Yes, Indeed we do get our tax refunded when we file tax return. If we do through a knowledgeable tax lawyer then he'll get you refund. Even if we paying tax on bills, car tax or many things it's adjusted or refunded. I've seen many peoples got refunded after becoming filer.
Even in almost every country in EU Govt take advance taxes and refunded. it's the same system but we're not used to right way. Once sorted it'll run smooth.

Only advance tax like withholding taxes are returned, which is charged in PTCL bill, I think gas, electricity bills don't have refundable taxes.

 

[Politically1981]

I think I was unable to pose my question correctly. What I meant was that as a businessman or salary person, I already pay my income tax, so why do we need to pay income tax again when we are paying token for the car.

And if we are paying the income tax while paying the token for the car then can we get income tax adjustment in our salary and/or business?

I completely agree with you regarding withholding tax everywhere. Ideally there shouldn’t be but the problem is we are a developing country with very low tax base. As we go towards tax broadening and people start paying tax, government will most certainly move away from tax deepening. By tax deepening I mean existing people paying lots of taxes while vast majority is outside of the tax regime.

InshlAllah we will get there in the foreseeable future if we continued with the existing policies of tax broadening and everybody started paying their fair share of taxes.

 

[pkpatriot]

No income tax will be given back, I think u mean that it will be adjustable or not against your upcoming income tax, I don’t know, withholding taxes are usually adjustable
Our govt will never give u back any money even if they owe you
Road tax is too much
What about those who paid life time token taxes in previous years ??

This law is about Islamabad, there was no option of life time token tax for Islamabad registered cars. It was in Punjab and may be aome where else.