With advanced income tax levied on cars with registration slips starting in April, the vehicle registration at the Road Transportation Administration Department (RTAD) has reportedly risen.
Prior to the imposition of advanced income tax, between 50 to 100 cars with slips are daily applied for registration at RTAD.
Advanced income tax was previously levied on individually imported cars or permit free cars or brand new cars. Starting from 1st April, cars with slips which were returned after deregistration of old and scrapped cars will have to be paid advanced income tax.
The initial vehicle registration will be issued in the presence of advanced income tax receipts beginning 1st April. Previously, there were 50 cars applying for registration a day, at the very most. And now, the number of registered cars has reached up to 100 daily, said an official from the RTAD.
The advanced income tax was imposed on permit free cars starting in May 2016. According to 2016 Union Tax Law, the cars worth below Ks30million are set at 15 per cent while 20 per cent are paid for cars worth from Ks30 to Ks100 million and 30 per cent, for the cars worth above Ks100million.
The news of tax hiked up the car price and slip price in the local auto market.