Karachi, February 24, 2025 – The Pakistan Business Council (PBC) has urged the Federal Board of Revenue (FBR) to introduce restrictions on the number of vehicles an individual can purchase in order to curb benami transactions.
In its recommendations for the 2025-26 budget, the PBC highlighted a major loophole in the current system, stating that there is no legal limit on the number of vehicles an individual can register under their name. This lack of regulation has, according to the PBC, facilitated benami transactions, where vehicles are purchased and registered under fake or proxy ownership to evade taxes and conceal assets.
To address this issue, the PBC has proposed a cap on the number of cars a single individual can register. Specifically, the council recommends limiting the maximum number of vehicle registrations per person to 10. This restriction, the PBC believes, will serve as an effective deterrent against illicit financial activities in the automobile sector.
According to the PBC, the introduction of such a policy will enhance transparency in vehicle ownership records and allow the FBR to track and tax legitimate transactions more effectively. Additionally, it will discourage hoarding and speculative purchases, which contribute to artificial demand in the car market.
The PBC emphasized that restricting excessive vehicle purchases will not impact genuine buyers or businesses but will primarily target those engaging in tax evasion and money laundering. The council has urged the government to implement this measure alongside stronger monitoring mechanisms and digital tracking systems to further tighten control over benami assets.
Furthermore, the PBC has recommended that the FBR collaborate with relevant authorities, including the Excise and Taxation Departments, to ensure strict enforcement of vehicle ownership regulations. The council also suggested periodic audits and automated alerts to identify unusual vehicle registrations under a single name.
With these recommendations, the PBC aims to support the government’s broader efforts to combat tax evasion and enhance financial accountability in Pakistan’s economy. It remains to be seen whether the FBR will take up this proposal in the upcoming 2025-26 budget deliberations.
