Imports
ImportsAdvance tax rates on imports under Section 148 have been mentioned in Part II of the First Schedule of Income Tax Ordinance 2001. These rates are mentioned as given below:
Table of Contents
- Persons importing goods mentioned in Part I of Twelfth Schedule 1%
- Persons importing goods mentioned in Part II of Twelfth Schedule 3.5% for Commercial Importers 2% for others
- Persons importing goods mentioned in Part III of Twelfth Schedule 5.5%
- For commercial importers falling under Part III of the Twelfth Schedule 6%
Twelfth Schedule here means Twelfth Schedule of Income Tax Ordinance, 2001. This schedule has three parts namely-I, II and III. Part I and Part II detail the list of goods along with their HS Codes whereas Part III stipulates the rate for all the goods not covered in Part I and Part II.
It is further provided that:
- Manufacturers importing items mentioned in SRO 1125(I)/2011 1%
- Import of finished paharmaceutical products 4%
- Import of CKD kits 1%
*The advance tax on imports is calculated on import value including customs duty, sales tax and federal excise duty.
For example, the import value of a good is Rs.1,000,000. Customs duty is Rs.100,000, sales tax Rs. 170000 and federal excise duty Rs. 150,000, the advance income tax payable (1%) on import will be calculated as under:
Import Value in PKR = 1,000,000
Customs Duty = 100,000
Sales Tax = 170,000
Federal Excise Duty = 150,000
Value for Income Tax = 1,420,000
Advance Income Tax (1%) = 14,200
However advance tax on import of mobile phones at the rate of per mobile as given below:
C&F Value of Mobile Phones(US$) |
Tax (Rs.) |
|
In CBU Condition |
In CKD/SKD Condition |
|
| Up to 30 except smart phones | 70 | 0 |
| Exceeding 30 and up to 100 and smartphones up to 100 | 100 | 0 |
| Exceeding 100 and up to 200 | 930 | 0 |
| Exceeding 200 and up to 350 | 970 | 0 |
| Exceeding 350 and up to 500 | 5,000 | 3,000 |
| Exceeding 500 | 11,500 | 5,200 |
*Where CBU = Completely built up
CKD = Completely knocked down
SKD = Semi knocked down
Advance Tax Rates under Chapter XII of Income Tax Ordinance 2001
Part IV of First Schedule
Division II
Advance Tax Rate on Brokerage and Commision (Section 233)
- Advertising Agents 10%
- Life Insurance Agents where commission 8%
received less than Rs. 0.5 million
- Others 12%
Division III
Advance Tax Rate on Motor Vehicle-Registration and Renewal of Token (Section 234)
- In case of goods transport vehicles, Rs. 2.50/Kg of laden weight
- In case of goods transport vehicles with laden weight of 8120 Kg or more, after ten years of first registration in Pakistan, advance tax will be collected at th rate of Rs. 1200 per annum
- In case of passenger vehicles plying for hire:
Capacity |
Non-Air-conditionedPer seat per annum (Rs.) |
Air-conditionedPer seat per annum(Rs.) |
| 4 or more but less than 10 persons | 200 | 375 |
| 10 or more persons but less than 20 | 500 | 750 |
| 20 or more persons | 1000 | 1500 |
- In other cases where motor vehicle tax is not paid lump sum:
Engine Capacity |
Tax (Rs.) |
| Upto 1000 CC | 800 |
| 1001CC to 1199 CC | 1500 |
| 1200 CC to 1299 CC | 1750 |
| 1300 CC to 1499 CC | 2500 |
| 1500 CC to 1599 CC | 3750 |
| 1600 CC to 1999 CC | 4500 |
| 2000 CC & above | 10,000 |
- In other cases where motor vehicle tax is paid lump sum:
Engine Capacity |
Tax (Rs.) |
| Upto 1000 CC | 10,000 |
| 1001CC to 1199 CC | 18,000 |
| 1200 CC to 1299 CC | 20,000 |
| 1300 CC to 1499 CC | 30,000 |
| 1500 CC to 1599 CC | 45,000 |
| 1600 CC to 1999 CC | 60,000 |
| 2000 CC & above | 120,000 |
Division IV
Advance Tax Rates on Electricity Consumption (Section 235)
Industrial and Commercial Consumers
Gross Amount of bill (Rs.) |
Tax (Rs.) |
| Up to 500 | 0 |
| exceeds 500 but does not exceed 20,000 | 10% of amount |
| exceeds 20,000 | 1950 plus 12% of the amount exceeding 20,000 for commercial consumers 1950 plus 5% of the amount exceeding Rs.20,000 for industrial consumers |
Domestic Consumers
- zero percent the amount of monthly bill is less than Rs.25,000;
- 7.5% if the amount of monthly bill is Rs. 25,000 or more
Division V
Advance Tax Rates on Telephone users (Section 236)
| Gross Amount of monthly bill (Rs.) | Tax (Rs.) |
| In the case of a telephone subscriber (other than mobile phone subscriber) where the amount of monthly bill exceeds 1000. | 10% of the amount exceeding 1000 |
| In the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card | 15% of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form”] |
- In the case of persons given in General Order under Section 114B of Income Tax Ordinance 2001, the rate of advance tax shall be 75%.
Division VII
Advance Tax Rates Purchase, Registration and Transfer of Motor Vehicles (Section 231B)
At the time of registration or purchase of a new motor vehicle
Engine Capacity |
Tax (% of Value) |
| Upto 850 CC
851CC to 1000 CC |
0.5% 1% |
| 1001CC to 1300 CC |
1.5% |
| 1301 CC to 1600 CC |
2% |
| 1601 CC to 1800 CC |
3% |
| 1801cc to 2000cc |
5% |
| 2001cc to 2500cc |
7% |
| 2501cc to 3000cc
Above 3000cc |
9% 12% |
- The advance tax rate shall be Rs.20,000 where the engine capacity is not applicable and the value Rs. 5 million or more.
- The amount of tax shall be reduced by 10% for every year after the date of first registration.
At the time of transfer of registration or ownership motorvehicle
Engine Capacity |
Tax (Rs.) |
| Upto 850 CC |
– |
| 851 CC to 1000 CC |
5,000 |
| 1001 CC to 1300 CC |
7,500 |
| 1301 CC to 1600 CC |
12,500 |
| 1601 CC to 1800 CC |
18,750 |
| 1801 CC to 2000 CC |
25,000 |
| 2001 CC to 2500 CC |
37,500 |
| 2501cc to 3000cc |
50,000 |
| Above 3000 CC |
62,500 |
In case of locally manufactured vehicle is registered after purchase from local manufacturer
Engine Capacity |
Tax (Rs.) |
| Up to 1000 CC |
100,000 |
| 1001 CC to 2000 CC |
200,000 |
| 2001 CC and Above |
400,000 |
Division VIII
Advance Tax at the time of sale of Auction (Section 236A)
Immovable Property 5%
Other 10%
*This tax will be paid by the person purchasing asset by auction.
Division X
The advance tax rate on transfer or sale of immovable property (Section 236C)
| Amount | Tax Rate |
| Gross amount of the price <= Rs. 50 million |
3% |
| Rs. 50 million < Gross amount of the price <= Rs. 100 million |
3.5% |
| Gross amount received> Rs. 100 million | 4% |
Division XA
Advance tax rates on TV plays and advertisements (Section 236CA)
Description |
Rate of Tax |
| Foreign-produced TV drama serial or play | Rs.1,000,000 per episode |
| Foreign-produced TV play (single episode) | Rs.3,000,000 |
| Advertisement starring foreign actor | Rs.500,000 per second |
Division XIV
Advance tax rates on sale to distributors, dealers or wholesalers (Section 236G)
Category |
Rate of Tax |
| Fertilizers | 0.7% |
| Distributors, dealers or wholesalers of fertilizer-appearing both in ATL Income Tax and Sales Tax | 0.25% |
| Other than Fertilizers | 0.1% |
DIVISION XV
Advance tax on sale to retailers (Section 236H) 0.5%
Division XVIII
Advance tax on purchase of immovable property (Section 236K)
|
Amount |
Tax Rate |
| Gross amount of the price <= Rs. 50 million |
3% |
| Rs. 50 million < Gross amount of the price <= Rs. 100 million |
3.5% |
| Gross amount received> Rs. 100 million | 4% |
DIVISION XXVII
Advance tax rate on amount remitted abroad through credit, debit or prepaid cards (Section 236Y) 5%