FBR to impose penalty on provincial authorities for allowing non-filers to purchase vehicles, immovable properties

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ISLAMABAD: Federal Board of Revenue (FBR) has been empowered to impose fine on provincial authorities for allowing non-filers to transfer immovable properties or register motor vehicles. ©

FBR sources told PkRevenue.com that three percent of the total amount of immovable properties or new / imported motor vehicles shall be imposed on provincial authorities for processing requests of non-filers of income tax returns. ©

The sources said that through Finance Act, 2018 a Section 227C was inducted to Income Tax Ordinance, 2001 whereby a ban was imposed on non-filers to purchase immovable properties above Rs5 million and register new locally assembled motor vehicles or imported used motor vehicles of any engine capacity. ©

The sources said that the ban had been implemented from July 01, 2018 but ambiguity was prevailed. The new government in its Finance (Supplementary) Bill, 2018 proposed withdrawal of this ban. But on the strong reaction from opposition and other stakeholders the government had compelled to continue to with this ban. However, some amendment had been made to Section 227C and now the government had put a complete ban on non-filers on purchase of above 200CC vehicles. ©

The sources said that the FBR will collect three percent of total motor vehicle value as penalty in case any registering authority of Excise and Taxation Department accepts, processes or registers any application for registration of a locally manufactured motor vehicle or for the first registration of an imported vehicle in violation of the provisions of clause (a) of section 227C. ©

Similarly, the FBR will collect three percent of total value of immovable property in case any authority responsible for registering, recording or attesting the transfer of immovable property accepts or processes the registration or attestation of such property in violation of the provisions of clause (b) of section 227C.©

 

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