KARACHI: The Federal Board of Revenue (FBR) has enforced a complete ban on purchase of new cars, regardless of engine capacity, by a non-filer of income tax return.
Sources said the FBR has issued a clarification that two-wheeler motor cycle and three-wheeler rickshaw would not fall under this ambit.
To increase the number of return filers, a new section 227C was inducted to the Income Tax Ordinance, 2001 through Finance Act, 2018.
Under the section, applications for booking, registration or purchase of a new locally manufactured motor vehicle or first registration of an imported vehicle would not be accepted or processed by any vehicle registering authority or a manufacturer of a motor vehicle unless the person was a filer and appeared on the Active Taxpayers List (ATL).
The FBR clarified that all motor vehicles, regardless of their engine capacity would fall within the purview of this newly inserted section 227C of the ordinance.
The FBR further explained that the term motor vehicles would include all types of automobiles, including cars, jeeps, vans, trucks etc, irrespective of whether it was for private or commercial use.
However, the new provision will not apply to motorcycles, rickshaws and motorcycle-rickshaws, ie, the condition of being a filer shall not extend to persons purchasing locally manufactured motorcycles, rickshaws and motorcycle-rickshaws.
The FBR officials said that under the same provision of income tax law, a new restriction has been imposed on purchase of immovable property by a non-filer.
Under this restriction, property registration authorities, which are engaged in registering, recording or attesting transfer of any immovable property exceeding Rs5 million, have been barred from accepting or processing any application or request by a person for making transaction of any immovable property exceeding such amount unless such person is a filer.
