ISLAMABAD: While the Federal Board of Revenue (FBR) has imposed the conditions for filers for the purchase of new/imported vehicles from July 1, 2018, a letter with the tax authorities in Lahore claims that the vehicles below 1000cc are exempted from the new condition. The letter of the Directorate of Excise and Taxation, Lahore, which is a clarification regarding vehicle registration, says there is no requirement to being a filer for the purchase of vehicles below 1000cc.
The letter, a copy of which is available with Pakistan Today, claims that a meeting regarding the issue was held with the Commissioner of Income Tax, RTO-II, Lahore who has consented that ”There is no requirement for filers for the registration or transfer of motorcycles, commercial vehicles, and cars below 1000cc”.
The letter says the meeting was informed that an applicant for the registration of a car above 1000cc is required to be a filer. Besides, vehicles with engine capacity of 1000cc and above registered by way of transfer (known as NRT), the transferee is required to be a filer.
“The above guidelines are in accordance with the discussion with FBR authorities at Lahore. However, , written clarification from FBR is still awaited. Any scenario other than those mentioned above, may be directed to Deputy Secretary (Tech), ET&NC Department or Director. Excise and Taxation (Region-C), Lahore. All the respective Motor Registering Authorities in Punjab may be informed accordingly, please,” a note in the same letter said.
The letter written by Director Excise and Taxation (Region C), Lahore on July 4, 2018, was sent to all directors in Punjab.
The letter also referred the earlier notification of FBR regarding the imposition of the condition of filers for the purchase of vehicles in the country effective from July 1. “ After Insertion of Section 227-C of Income Tax Ordinance, 2001 an amendment brought through Federal Finance Act, 2018 according to the subsection (a) of said section any application for booking, registration or purchase of a new locally manufactured motor vehicle or for 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 letter mentioned.
However, despite repeated attempts, the spokesperson of FBR could not be contacted for the official version in this regard.
On the other hand, sources claim that both banks and manufacturing companies of vehicles are not accepting bookings from people who are not registered at FBR as filers from July 1.
Though the major assemblers/manufactures of vehicles are reportedly adhering to the new restriction but earlier, Pakistan Automotive Manufacturers Association (PAMA) had recommended few changes in the law saying otherwise, it can negatively affect the auto industry of Pakistan.
In a letter written to the Ministry of Finance, PAMA had stressed that in the new section 227C in the income tax ordinance which restricts non-filers from buying motor vehicles will affect the auto sales in Pakistan.
“Presently there are about 1.2million filers, as this new condition would be put into effect, only filers would buy vehicles which would result in a sudden drop in sales. Assuming a filer buying vehicle once every five years, the yearly sales are expected to go down to about 240,000 units, against the current annual projected figures of 350,000 units,” the association said.
Can i get the copy of this letter .