Reports of exorbitant withholding taxes on rickshaws, bikes 'baseless': FBR

July 25, 2019

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FBR does not have any plans to impose taxes on autorickshaws or motorbikes, says spokesperson. — AFP/File
FBR does not have any plans to impose taxes on autorickshaws or motorbikes, says spokesperson. — AFP/File

A Federal Board of Revenue (FBR) spokesperson on Thursday strongly refuted reports that the govt has imposed withholding taxes to the tune of tens of thousands of rupees on auto-rickshaws and motorbikes, terming them "baseless".

The spokesperson, in a statement, said that under the Income Tax Ordinance 2001, taxes are only imposed on cars. He further clarified that the FBR has not increased existing taxes imposed on motor vehicles under Sections 231B (advance tax on private motor vehicles) and 234 (tax on motor vehicles) under the Income Tax Ordinance 2001.

The statement added that the FBR does not have any plans to impose taxes on autorickshaws or motorbikes.

"Government will provide every facility it can to the lower-income group," the statement read.

The statement seems to be a response to rumours, often accompanied with a picture of what appears to be a fake notification, circulating on social media claiming that the body has imposed withholding taxes to the tune of tens of thousands of rupees on motorcycles and autorickshaws.