KARACHI: The Federal Board of Revenue (FBR) has decided to impose five percent penalty on registration of motor vehicles on the name of non-filers.
A document showed that the FBR fixed five percent penalty of the motor vehicle’s value if an auto maker accepts or processes an application of non-filer for booking or purchasing of locally-manufactured motor vehicle. The penalty is three percent for a registration authority of an excise and taxation department.
Tax officials said the penalty was introduced to discourage ownership of locally-assembled or imported vehicles by non-filers.
The present government, in the Finance (Supplementary) Bill 2018, proposed withdrawal of a condition imposed on non-filers on registering vehicles by the previous government.
It, however, pulled back the proposal later as business community dismayed over the decision to relax restriction as it was feared to discourage documentation in the economy. Yet, buyers of 200cc cars or overseas Pakistanis are exempted from the restriction.
