Written by Akhter Syed in Taxation Section 231B requires tax collection at vehicle registration, transfer and sale, with a 4% advance tax applicable to non-filers leasing motor vehicles. The Federal Board of Revenue (FBR) has outlined advance income tax requirements on motor vehicles for Tax Year 2027, covering July 1, 2026, to June 30, 2027. According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, Section 231B governs advance tax collection on motor vehicles. Under the provision, the Excise and Taxation Department must collect advance tax at the time of vehicle registration and transfer of ownership at rates specified in Division VII of Part IV of the First Schedule. However, tax collection on registration and ownership transfer is not applicable after five years from the vehicle’s first registration in Pakistan. The law also requires vehicle manufacturers to collect advance tax when selling a car or jeep. Similarly, leasing companies, scheduled…