ISLAMABAD, July 10: The government has waived the withholding tax on motor cars used for more than ten years in Pakistan.

A spokesman for the Central Board of Revenue, Vakil Ahmed Khan, said in a statement on Wednesday that the exemption would be available from July 1, 2002.

He said the withholding tax, which was being collected by the Post Office and registration authorities at the time of registration of vehicles and payment of token tax, “has been withdrawn in respect of motor cars used for more than 10 years.”

The CBR has already issued instructions to the Director General, Post Office, and all secretaries of the provincial excise and taxation departments not to collect the withholding tax on motor cars used for more than 10 years, so that no undue hardship is caused to the owners of such cars, the spokesman said.

Considering the hardship faced by the owners of the old cars, the income tax law has been amended, the spokesman added.