Federal Board of Revenue (FBR) has decided to add all businesses associated with the auto sector in the tax net to increase the revenue. All the sector related to the auto sector like danters, painters, parts dealers, showrooms and workshop even all the business-related with auto-sector.
This is not the first time that the government targeted the auto sector for increasing the revenue and stable the economic condition in the country. Recently the government-imposed taxes and duties on vehicles for generating revenue and this time government added these sectors into the tax net just to increase the revenue. The government-imposed taxes on the auto- sector because it is very easy to target the auto sector because this is one of the largest growing sectors in the country.
According to the details, the Regional Tax Office has collected all the information about the major Showroom, workshops, dealers and all the other business associated with auto sectors in the Karachi to calculate the total income and after this issue a notice to around 312 auto showrooms, workshops, etc.
BTB said that according to their study most of the businesses related to the auto sectors are not even added in the tax brackets.