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Govt to raise taxes on motor vehicles by 200% for non-filers

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  • FBR announces increase in withholding tax rate for non-filers.
  • 3% import value to be collected when engine capacity N/A.
  • Non-ATL filers to pay Rs303 for withdrawal of Rs50,500.

The Federal Board of Revenue (FBR) has revised upward by 200% the tax on motor vehicles for those not on the Active Taxpayers List (ATL).

Non-filers will now pay a fixed tax of 18%, 24%, and 30% of the value of motor vehicles having engine capacity of 2001cc to 2500cc, 2501cc to 3000cc and above 3000cc, respectively.

The move comes as the FBR announced an increase in the withholding tax rate for non-activate tax filers or those not on the ATL in a bid to increase the government’s revenue generation and encourage people to pay taxes.

According to a Wednesday circular, for non-ATL persons, the rates have be increased by 200% — 18%, 24% and 30%.

However, for those on the ATL, the fixed amount of tax on motor vehicles has been replaced with the collection of tax at the rate of 6%, 8% and 10% of the value of motor vehicle having engine capacity of 2001cc to 2500cc, 2501cc to 3000cc and above 3000cc respectively.

Moreover, the circular added that where engine capacity is not applicable. The value of the vehicle is Rs5,000,000 or more, “the rate of tax collectible will be 3% of the import value, as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles.”

The circular also announced that non-ATL filers will be taxed Rs303 for a bank withdrawal of Rs50,500. Those withdrawing between Rs55,000-Rs75,000 will be taxed Rs450.

However, Pakistan’s government agencies and foreign diplomats will be exempted from these taxes.

Additionally, the circular announced that to discourage unnecessary outflow of foreign exchange reserves via credit/debit card transactions, “withholding tax rates have been increased from 1% to 5% for ATL persons and from 2% to 10% for non-ATL persons.”

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Instagram releases a kid-focused feature.

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With the help of this new Instagram function, parents will have more control over what their kids do online.

New users between the ages of 13 and 15 will have their Teen Accounts enabled immediately, while current users in the US, UK, Canada, and Australia will be gradually transferred to the new accounts over the course of the following 60 days.

Important characteristics of teen accounts

Teen accounts are by default set to private, which limits the display of their posts to authorized followers and keeps non-followers from getting in touch with them.

Restrictions on Teen Messaging: To minimize unwanted encounters, teens are only able to message people they follow or already have a connection with.

Control of Sensitive Content: Tight settings will prevent exposure to potentially dangerous content, like advertisements for cosmetic procedures or violent content.

Parental Control: Guardians can keep an eye on their offspring’s internet behavior, such as direct messaging and content intake.

Positive Content: By allowing teenagers to research interests, like sports, music, or the arts, they can enhance their online experience.

Extra protection

Reminding teenagers to take breaks after 60 minutes of app use is part of the daily limit.

Sleep mode: To encourage sound sleep habits, automatically mute notifications between 10 p.m. and 7 a.m.

Using artificial intelligence to power age verification, underage individuals can be identified and moved to teen accounts.

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Microsoft and BlackRock are set to establish a $30 billion fund for artificial intelligence infrastructure.

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AI models, particularly those employed in deep learning and extensive data processing, necessitate considerable computer power, resulting in increased energy usage.

The computational demands of AI have compelled technology firms to interconnect thousands of chips in clusters to attain the requisite data processing capacity, resulting in a significant increase in the demand for specialized data centers.

The investment entity, termed Global AI Infrastructure Investment Partnership, seeks to improve AI supply chains and energy procurement, according to BlackRock and Microsoft.

MGX, the investment firm supported by Abu Dhabi, will serve as a general partner in the fund, while Nvidia (NVDA.O), a manufacturer of AI chips, will provide its expertise.

The collaboration is expected to generate a total investment potential of up to $100 billion, inclusive of loan funding, according to the corporations.

The investments will primarily be in the United States, with the remainder allocated to partner countries, as stated by the firms.

The Financial Times initially reported on the development.

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Pakistan ascends 14 positions in the UN E-Government Index 2024.

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This significant breakthrough signifies Pakistan’s shift from the “Middle EGDI category” to the “High EGDI category” for the first time, indicating considerable improvements in digital government capabilities.

The nation’s E-Government Development Index has risen to 0.5095, an increase from 0.42380 in 2022. Although Pakistan remains behind global leaders such as Denmark (0.9847) and regional leaders like Singapore (0.969) and the Maldives (0.6745), this enhancement is a significant accomplishment.

Minister of State for Information Technology Shaza Fatima Khawaja has reaffirmed the government’s dedication to establishing a digital Pakistan.

During an event in Islamabad on Wednesday, she underscored the necessity for collaborative endeavors to promote innovation among the youth.

She asserted that the private sector ought to have a pivotal role in realizing a digital Pakistan. Shaza Fatima said that the administration is endeavoring to deliver exceptional stable and rapid internet connectivity.

She emphasized that Pakistan’s position in the UN’s e-governance development index had ascended by fourteen points. She stated that we are one of two Asian countries that have advanced from the medium tier to the top tier of digital e-governance, characterizing this as a notable accomplishment.

The Minister of State further asserted that Pakistan has made significant advancements in cyber security, attaining a premier rank in this field.

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