ISLAMABAD (December 16 2004): The Central Board of Revenue (CBR) has issued the actual rate of capital value tax (CVT) on old and used vehicles imported by overseas Pakistanis out of total consolidated amount of duties/taxes as per Customs General Order 10 of 2004. The CBR on Wednesday issued SRO 977(I)/2004 to notify the four slabs of capital value tax, which are incorporated in the consolidated amount of duties and taxes.
Official sources told Business Recorder that income tax department has issued SRO only to specify the maximum rate of CVT, which is part of total duties and taxes on the vehicles imported by the overseas Pakistanis. These slabs would help the income tax department in obtaining due share of CVT out of total amount of duties and taxes levied under CGO 10 of 2004 under various categories of vehicles.
Officials said that consolidated amount of duties and taxes could be calculated on the basis of slabs of CGO 10. However, the rate of CVT should in any case not exceed the amount given in the notification for different categories of vehicles.
The amount of CVT will not exceed Rs 22,854 on the import of 801cc to 1000 cc vehicles; Rs 59,433 from 1001 cc to 1300 cc; Rs 1,16,004 from 1301 cc to 1600 cc; and the amount of CVT will not exceed Rs 1,59,338 on the import of vehicles ranging from 1601 cc to 1800 cc.
Officials added that the notification has been issued to give legal cover to the capital value tax charged under the consolidated amount of duties/taxes as per customs general order 10 of 2004.
Following is the text of the notification issued on Wednesday: In exercise of powers conferred by sub-section (10) of section o7 of the Finance Act, 1989 (V of 1989), the Federal Government is pleased to direct that in case of old and used vehicles imported and assessed under Customs General Order NO.10 of 2004, the amount of Capital Value Tax shall in any case not exceed the following amount, namely:-
From 801 cc to 1000 cc, Rs 22,854; from 1001 cc to 1300 c Rs 59,433; from 1301 cc to 1600 cc, Rs 1,16,004; from 1601 cc to 1800 cc, Rs 1,59,338.