Govt updates description of automobile goods for 25% sales tax

March 08, 2024 (MLN): The federal government has revised the descriptions of manufactured automobile goods under the PCT code to which the 25% sales tax will be applicable, as imposed by the government.

To recall, the Federal Board of Revenue (FBR) issued a notification on March 08, 2023, that a 25% sales tax is to be charged on both the value of imported goods and the value of domestically supplied goods.

As per the amendments, the PCT code 87.03 that was earlier applicable to the locally manufactured or assembled SUVs and CUVs will now apply to locally manufactured or assembled vehicles having engine capacity of 1400cc and above.

Furthermore, the PCT code 87.03 will cover locally manufactured or assembled vehicles if the invoice price (excluding sales tax) exceeds Rs4 million.

No change has been made to the PCT code 87.04 which includes locally manufactured or assembled double cabin (4x4) pick-up vehicles.

Copyright Mettis Link News