The car owners and consumers are facing difficulties and issues one-after-another. The latest problem owners in Punjab are facing is while paying token tax online. According to details, the owners of 2016-17 models are facing the error of ‘Car Suspension’ on App.
Error:
Talking to PakWheels, the 2016-17 model car owners said that they are receiving “Sorry!, Vehicle is suspended for less Income Tax” error. “Now We cannot go to Excise office due to COVID-19, and there is no assistance available on the App,” the owners said. They further added that this is benefiting agents because they are asking for a bribe to resolve the issue.
PITB Stance:
Explaining the error, Punjab Information Technology Board (PITB) representative said the Federal Board of Revenue (FBR) decreased the income tax in 2016-17, but later increased. “The Excise has suspended the cars with low-income tax submission and provided a list to PITB,” he said, adding that the list and tax amount is now uploaded, and people can pay them through E-Pay.
The main question that arises from this situation is what if the car has been sold; hence, why the new owner should pay the income tax of the last owner. Technically, it was a mistake of the government institution, and it should be responsible, not the owners.
Furthermore, there is no point in implementing three to four years old taxes, because it was government’s own decision to reduce it.
This new approach by the government will benefit agents and increase the bribes. The Excise department and FBR should resolve the issue so that consumers can submit token taxes without any further hassle.
Tax Incentives By Punjab Govt:
It is pertinent to mention that the Punjab government had offered new incentives on Vehicle Motor Tax to the provincial consumers. Under FY 2020-21 annual budget, the government said citizens can avail 20% rebate by paying their token tax in a lump sum before August 31st, 2020. In his speech, Punjab Finance Minister Makhdoom Hashim Jawan Bakht said if any individual failed to pay the tax within this period, he will not be liable for any penalty, if he pays the amount during the financial year of 2020-21.
The minister further said that a 5% discount will be offered to the consumer if he pays total tax through the e-system. The government said this policy will remain in force till June 30th, 2021.
