ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that non-filers are restricted to purchase motor cars of any engine capacity under amended income tax law.
The FBR issued a clarification in this regard. However, it said that two-wheeler motor cycles and three-wheeler rikshaws are exempted from this condition.
The FBR said that in order to increase the number of return filers through efforts of broadening of base, a new section 227C was inducted to Income Tax Ordinance, 2001 through Finance Act, 2018 under which applications for booking, registration or purchase of a new locally manufactured motor vehicle or for the first registration of an imported vehicle would not be accepted or processed by any vehicle registering authority or a manufacturer of a motor vehicle unless the person is a filer and appeared on Active Taxpayers List (ATL).
The FBR clarified that all motor vehicles regardless of their engine capacity would fall within the purview of this newly inserted section 227C of the Ordinance.
The FBR further explained the term motor vehicles that it would include all types of automobiles including cars, jeeps, vans, trucks etc irrespective of whether it is for private or commercial use.
However, the new provision will not apply to motorcycles, rickshaws and motorcycle-rickshaws i.e. condition of being a filer shall not extend to persons purchasing locally manufactured motorcycles, rickshaws and motorcycle-rickshaws.