Govt Gives Relaxation to Non-Filers in Buying Cars – Details
The National Assembly Standing Committee on Finance and Revenue has approved amendments allowing non-filers to purchase rickshaws, motorcycles, tractors, and cars up to 800cc.
This decision is part of a broader review of The Tax Laws (Amendment) Bill, 2024, aimed at addressing stakeholder concerns and refining the tax system. At a meeting chaired by MNA Naveed Qamar, the committee discussed various provisions of the bill.
Last year in December, the incumbent government implemented strict measures restricting non filers to buy vehicles, property an opening maintaining bank accounts.
The primary goal of the FBR’s ban was to encourage tax compliance. Restricting large purchases for non-filers was a strategy to integrate them into the formal economy and increase tax revenue for national development.
The plan included:
- Individuals cannot purchase any motor vehicle except for a motorcycle, rickshaw, or tractor unless they file their tax return.
- Non-filers are prohibited from booking new cars through any car company or dealer.
- Vehicles purchased from the open market by non-filers cannot be registered or transferred in their name.
- Those wishing to acquire a bus or truck must ensure transport companies obtain official permission beforehand.
Who is a Non-Filer in Pakistan?
In Pakistan, a non-filer refers to an individual or entity that does not file their income tax return with the Federal Board of Revenue (FBR). Non-filers are not listed in the Active Taxpayer List (ATL) and are subject to higher tax rates and financial restrictions compared to tax filers.
Key Implications of Being a Non-Filer in Pakistan
- Non-filers face increased withholding taxes on banking, property, vehicles, and utilities.
- They cannot buy or register most vehicles or high-value property.
- Large transactions are monitored, with higher tax deductions.
- Non-filers miss out on rebates, exemptions, and lower tax rates.
- Penalties, asset seizure, and financial restrictions may apply.
What do you think about the recent amendment in The Tax Laws Bill, 2024? Drop your thoughts in the comments section.