The Federal Board of Revenue (FBR) has imposed a restriction on non-filers from purchasing new motor vehicles manufactured in Pakistan or imported vehicles, irrespective of engine capacity, from July 1, 2018.

Sources said that Finance Act 2018 has not exempted vehicles of 800cc from the condition of restriction on non-filers from the purchase of new cars. The non-filers cannot purchase vehicles of 800cc and below. There is no exemption granted to vehicles below 1000cc.

Under the Finance Act 2018, non-filers shall not be permitted to purchase new motor vehicles manufactured in Pakistan or imported vehicles.

This correspondent also asked FBR officials to clarify the status of the letter of the Excise and Taxation Department Punjab to all its regional directors that there is no requirement of being a filer for registration or transfer of motorcycles, commercial vehicles, and cars below 1000cc. The Directorate of Excise and Taxation Punjab had issued instructions to all its directors’ excise and taxation after issuance of the Finance Act 2018.

According to the past instructions of the Directorate General of Excise and Taxation Punjab, the applicant for registration of a car above 1000cc is required to be a filer and for motorcar with engine capacity of 1000cc and above registered by way of transfer (known NRT), the transferee is required to be filer, Excise, and Taxation Punjab added.

The FBR officials responded that the said letter was wrongly issued by the Provincial Excise and Taxation Punjab without the consent of the FBR. The said letter has been withdrawn by the Provincial Excise and Taxation Punjab, they added.

According to the Finance Act 2018, the new section 227C of the Income Tax Ordinance 2001 has imposed the restriction on the purchase of certain assets. Any application for booking, registration or purchase of a new locally manufactured motor vehicle or for first registration of an imported vehicle shall not be accepted or processed by any vehicle registering authority of Excise and Taxation Department or a manufacturer of a motor vehicle respectively, unless the person is a filer, the Finance Act 2018 added.