The government recently announced the budget for the fiscal year 2018-19. The budget has announced that an eligible person whose name is not on the list of active taxpayers can not buy vehicles.

Car owners / manufacturers have urged the government to revise its decision because the same will lead to a drastic reduction in car sales.

Pakistan Automotive Manufacturers Association (PAMA) has proposed some budget changes that could otherwise damage the car industry if not addressed immediately.

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Non-filgers can no longer buy new cars

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In a letter to the Minister of Finance, Miftah Ismail , PAMA Director General Abdul Waheed Khan has drawn attention to the issue of the new restriction that says the new section 227C in the income tax regulation that restricts non-prosecutors to the purchase of motor vehicles will affect the sale of vehicles in the country .

He stressed that there are about 1.2 million filers, and after this new condition was put into effect, only filers would buy vehicles that would result in a sudden drop in sales.

He claims that if the condition of the filer the projections of the industrial volume of selling 550,000 units per year, according to the Auto Policy 2016-21, would be lost.

The newcomers would see this new condition strange to the automatic policy. All those big names that are currently on their way to our market would be frustrated by this new situation and would lose confidence in our policy, he quoted.

"In addition to significant adverse effects on industry, the new condition would also be counterproductive, with the government losing revenue from the second highest sales payer industry," said Abdul Waheed Khan.

He also proposed a scheme that would help the government bring non-filers into the tax system. He proposed different tax rates for filers and non-filers for the next five years and encouraged citizens to submit tax declarations to pay comparatively less tax on passenger cars and commercial vehicles (trucks / buses).

PAMA DG went on to say that "We find no merit in imposing the disputed new condition and requests to withdraw it." We have known the government since pursuing policies to make it difficult for those who outside the tax network, some important steps have been taken in that direction and included in this budget. "

Via: Profit