Non-filers should be given relaxation, says Senate committee


The government has announced 2018-19 budget and proposed that non-filers would not be allowed to buy a new motor vehicle manufactured locally or imported until they file income tax return. After the proposal debate started in the auto industry whether it’s a good step or not. Some argued against it while some lauded the proposal. And now Senate Standing Committee on Finance has recommended to the government that it should relax restrictions on non-filers.

The committee asserted that government should allow non-filers to buy or import cars up to 1000cc to give relief to the middle-class population of the country. As per ET, the committee has conditionally supported the proposal made by the government against non-filers.

Read Also: Non-filers might not be able to purchase new cars

Moreover, Pakistan Automotive Manufacturers Association (PAMA) has also responded on this matter. PAMA DG Abdul Waheed Khan in a letter sent to finance minister has suggested some changes in proposals made by the government in the budget regarding non-filers.

DG said that in the country the filers are not in substantial numbers (1.2 million active tax filers), and this recent proposal for purchasing a vehicle will put the auto industry into dismay, the sales will drop and the government will lose a huge chunk of revenue.

New entrants will find this awkward and might also lose confidence, he further added. Moreover, he proposed that instead of barring non-filers from buying a car, the government should set different taxes for filers and non-filers for the next five years and in the process encourage the citizens to become filers by telling them the perks of being a filer.

After the government announced the budget, PakWheels contacted an industry analyst to take his view on non-filer condition. At that time he told us that the step proposed by the government is haphazard and might not get the green signal in the first place. Also, due to this premium on cars might also rise in the industry.

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My name is M. Ali Laghari and I love to read and write about Cars.

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