To increase the taxation network and increase the indirect tax revenue Federal Board of revenue (FBR) imposed sales tax on purchase and sale of used cars. According to FBR Issued SRO (SRO 931 (I) 2020) Sales tax 17% will charge on value of supply where registered person engaged in purchase and sale of used vehicle from general public on which sales tax already paid at the time of manufacture or import of vehicle, according to FBR additional tax 3% will apply if unregistered trader buy used car.
Federal board of revenue also give formula in said SRO to calculate the value of supply at which sale tax will apply.
Value of Supply = A-B
A: “it is the consideration in money, including all charges, fees and not include sales tax amount charged and received by registered person from the purchaser of used car or vehicle”
B: “it is the consideration in money, include all charges, fees, paid by the registered person (Buyer) to the seller of the used vehicle or car”
It is added transaction amount of buying and selling made through banking channel which is the requirement of section 73 of Act.
Value of Supply for sale tax purpose will be Zero if vehicle is sold at price lower than its purchase price.
This new taxation will apply on those who engage in the business of Buying and selling of used cars and not on individuals who buy and sell cars for their personal use.
Source said that the purpose of this new taxation implication is to bring car dealers in taxation network.
It is no doubt that the quality of petrol affects a lot in the performance of your car. If you use lower quality petrol, it may affect the performance of your car’s engine. The reason is that premium petrol quality like Euro 5 Petrol has a higher octane rate that definitely helps the vehicle squeeze more miles in the same amount of petrol.
Journey to Euro 1 Petrol to Euro 5 Petrol!
In the past, car scientists tried to manufacture such cars that deliver more excellent performance in a little amount of petrol. They didn’t care about pollutants coming out from the exhaust. Then progressed nations like the United States, European Union, Japan, and others set the standards of petrol to make the environment less pollutant.
In July 1992, the European Union Regulation introduced Euro quality petrol to improve air quality. After that, consecutively, five sets of improved petrol quality have been presented to reduce carbon monoxide (CO) emissions and enhance air quality across nationwide.
Euro 1 (EC93) introduced in 1992 and applied to all newly registered cars. In this quality, catalytic converters were introduced for the first time in the cars.
Euro 2 (EC96) petrol quality was introduced for all cars since January 1997. In this quality petrol, emissions limits for diesel engines was reduced.
Euro 3 (EC2000) applied to all cars from January 2001. In this quality, separate limits were set for nitrogen oxide and hydrocarbons emissions for diesel engines.
Euro 4 (EC2005) applied to all new cars from 2006. In this quality, diesel particulate filters were introduced to trap particulates. This technology traps about 99% particulates.
Euro 5 applied on all new cars from 2011. In this quality, extra diesel particulates filters were introduced to trap and control emissions.
Introduction of Hi-Octane 97 Euro 5 in Pakistan
PSO (Pakistan State Oil) company introduced world-class standard Hi-Octane 97 Euro 5 in this year 2020. It is a more significant step towards providing clean and higher quality petroleum services across Pakistan.
According to details, a special ceremony was held at PSO Service Station-2, Diplomatic Enclave on Tuesday, where Special Assistant to Prime Minister on Petroleum, Nadeem Babar, and Minister for Energy, Omar Ayub Khan were chief guests. They said that introduction of Hi-Octane 97 Euro 5 in Pakistan is the fulfilment of commitment to provide higher quality petrol and a step towards a clean environment.
Euro 5 emission limits (diesel)
HC+ NOx – 0.23 g/km
CO – 0.50 g/km
PM – 0.005 g/km
PM – 6.0×10 ^11/km
NOx – 0.18 g/km
Euro 5 emission limits (petrol)
NOx – 0.06 g/km
HC – 0.10 g/km
PM – 0.005 g/km (direct injection only)
CO – 1.0 g/km
Award-winning Benefits of Hi-Octane 97 Euro 5 Here are some of the outstanding benefits of Hi-Octane 97 Euro
Improves Engine Quality & Performance
The importance of engine in the structure of cars cant’ be denied. As our body converts food into energy, a car engine converts fuel into motion the same as it is. If it is kept clean and well-maintained, it helps the car run smoothly and faster. Due to the high octane rate compared to regular petrol, your car’s engine works more effectively and efficiently.
Clean & Green Environment
A clean and green environment is essential for human health. A pollution free environment can only be achieved by the reduction of hazardous chemicals and pollutants. Hi-Octane 97 Euro 5 minimizes harmful vehicle emissions with a decrease in Sulphur and Benzene content.
It is no doubt that Euro 5 Petrol increases the efficiency of your car. Most giant car manufacturing companies are trying to introduce more efficient engines and fuel consumption. Due to the high octane rate, Euro 5 petrol has become more efficient for car engines. It may cost you more than other petrol qualities, but it is much better for your car. The sale of Euro 5 petrol has been started on various petrol stations across the country. Drive yourself into innovative and smooth fuel experience by using this type of fuel for your car.
This new petrol gives opportunity to car rental companies, it reduce their car rental services cost which result increase in profitability.
As the month of june-2020 going to an end, and whisper has been start among the people that will petrol price and shortage in pakistan same in july-2020?
Due to increase in oil prices in international market, fuel price in Pakistan from july-2020 will increase. There is 100% increase in crude oil prices in international market from the last month two month. two months before it was trading at $19.9 and currently it is trading at $40 per barrel.Experts make prediction that increase in fuel price will be between Rs 5 per ltr to Rs 8 per Ltr.
Oil Shortage in Lahore Pakistan
There is still shortage of oil in Lahore and large queues seen at petrol Pumps and they were giving fuel of amount maximum Rs 500, and many pumps are closed due to not availability of fuel supply.
Petroleum product dealers saying that there is a chance of further shortage of oil from next month due to increase in oil price and it will get worse if authority fail to take any action against oil marketing companies.
According to petroleum dealer association of Pakistan secretary general Khawaja atif said Lahore is getting 40% fuel supply and large portion of it providing by PSO. (express tribune)
Impact on transport industry
Three factors, shortage of supply, increase in fuel price and covid-19 put a large impact on fares of public and private transport. This increasing in transportation cost of goods and services will lead to increase the prices of goods and service in the economy that’s result will increase inflation rate in the economy.
Wash your hand for 20 seconds, use sanitizer, wear a mask, wear gloves and avoid social gathering are the safety tips which everyone need to follow. Coronavirus live on a surface up to two to three day, at some surface like cloth it takes 6 Hours, so we can disinfect surface by home detergent, sweeps, Finix liquid product.
If someone use your car who has symptoms of COVID-19 or you take rent a car for your essential travel from car rental company, or someone sit on your car having symptoms of COVID-19, in mentioned all cases you need to disinfect car from corona virus and clean your car before using it.
When you are going to clean and sanitize your car wear gloves, mask, uniform and don’t touch your mouth until you completely disinfect car from corona virus and wash your hands. We list down following point and follow these steps for your car cleaning and sanitize car.
Remove all plastic mats and carpet mat from car and wash them with shampoo or use detergent and dry them under sunshine, it the first step of sanitize car
Open all doors of your car during cleaning and disinfecting car from corona virus.
Don’t us bleach and other chemicals for your car interior disinfection because that chemicals can damage your interior body. When you select any chemical for disinfect car from corona virus read carefully its terms and surface where it can be used.
You can Use warm sopy water or home detergent for your car interior like seats, car steering, are, Consul and avoid to use excess water while you disinfecting car interior.
Clean and disinfect commonly touching places like seats, vehicle interior and exterior handle, frond dash board, steering wheel, gear box, consul, seat belts, media player, wiper handel, all buttons, arm rest, air controller.
For glass and electronic product like media touch screen, Window glasses, use alcohol based spray containing alcohol atlases 75%. And dry them with tissue paper to avoid rashes on glass surface. According to Centers for diseases control and prevention (CDC) liquid having alcohol at least 70% is effective to disinfect corona virus.
Change vehicle AC Filter and change your personal car AC Filter ate least once in a month.
Make sure you properly clean and disinfect car key when you receive it from other person.
When you satisfied all surface is properly clean and sanitize your car, remove your mask and gloves and destroy them properly and wash your hand with sop at least 20 seconds or use sanitizer. if you not use uniform change your cloths and take a bath before you meet your family or anyone.
When you book your cab with chauffeur from rent a car company make sure car rental company ensure you that they are sending you car after disinfection and proper cleaning. You can ask car rental company to send pics and videos of their vehicles disinfection system. Askari rent a car Lahore sanitize their cars and clean and disinfect after every trip to provide safe travel to their customers.