Non-filers allowed motor vehicle purchase on enhanced tax rates

KARACHI: In order to generate sizeable revenue during the current fiscal year the government has lifted the ban on non-filers for purchasing motor vehicles.

 

 

 

Addressing floor of the house, Finance Minister Asad Umar presented Finance Supplementary (Second Amendment) Bill, 2019 on Wednesday and allowed non-filers to purchase up to 1300 CC engine capacity motor cars.

However, while granting relaxation the government also enhanced withholding tax rates for non-filers on purchase and transferring the registration of motor cars.

Through the Finance Supplementary (Second Amendment) Bill, 2019 amendment has been introduced to Section 227C of the Income Tax Ordinance, 2001. This section was introduced through Finance Act, 2018 to restrict non-filers to purchase motor vehicles and immoveable property above Rs5 million.

However, this is proposed that purchase restriction shall not apply on the following:

“Locally manufactured motor vehicle having engine capacity not exceeding 1300CC; locally manufactured motor cycle, motorcycle rikshaw and rikshaw; locally manufactured agricultural tractor.”

The government proposed to increase advance tax on purchase, registration and transfer of motor vehicles under Section 231B for non-filers.

The proposed and existing rates for non-filers are as:

 

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1 Comment

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