Advance Tax Rates Under Income Tax Ordinance 2001

Imports

Advance 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:

• 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-conditioned Per seat per annum (Rs.)	Air-conditioned Per 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%