Advance Income Tax Increased for Non-Filers

The government in its recent financial amendments, have allowed non-filers of tax returns to buy new cars. Earlier in the first financial amendment made in January 2019, the government allowed non-filers to buy cars up to 1300cc engine capacity only.

Related: Automakers Happy as Government Allows Non-Filers to Buy New Cars

Now as per the second financial amendment, non-filers can buy locally assembled vehicles of all engine capacities. However the rate of Advance Income Tax has been significantly increased for non-filers by 50%. Below is the rate of Advance Income Tax under Section 231(B) for different vehicle categories based on their engine displacement:

Engine (cc)Tax for Filers (PKR)Tax for Non-Filers (PKR)
850cc or below7,50015,000 (previously 10,000)
851cc to 1000cc15,00037,500 (previously 25,000)
1001cc to 1300cc25,00060,000 (previously 40,000)
1301cc to 1600cc50,000150,000 (previously 100,000)
1601cc to 1800cc75,000225,000 (previously 150,000)
1801cc to 2000cc100,000300,000 (previously 200,000)
2001cc to 2500cc150,000450,000 (previously 300,000)
2501cc to 3000cc200,000600,000 (previously 400,000)
3000cc or above250,000675,000 (previously 450,000)
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