Auto sector mounts pressure on govt in non-filers case

E-Paper | October 28, 2026

Auto sector mounts pressure on govt in non-filers case

The Newspaper's Staff Reporter Published October 3, 2018

KARACHI: In a letter to Finance Minister Asad Umar dated Oct 1, the Pakistan Automotive Manufacturers Association (PAMA) claims the government will suffer Rs50 billion in revenue loss in case of sales drop due to ban on purchase of vehicles by non-filers of tax returns.

While urging the government not to place any restriction on non-filers for purchase of cars, PAMA offered its cooperation for documentation purposes, saying “it will continue to share the data on non-filers with the Federal Board of Revenue (FBR) on a regular basis.”

The PML-N government had imposed a restriction on non-filers of tax returns from purchasing new cars in the Finance Act 2018-19, but the amendments to that act introduced by the PTI’s finance minister will reverse the decision, if passed.

In 2014, categories were introduced for purchase of locally produced cars by filers and non-filers with lower and higher rates of income tax which has helped the government by creating separate class of non filers which the government could pursue about which the local assemblers have also been providing data to the government, PAMA said.

Published in Dawn, October 3rd , 2018

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Pakistan

The ‘policy’ that broke the camel’s back

No impact, say most new entrants to auto sector about non-filer ban

A divisive move

JA-Australia

Oct 03, 2018 08:22am

Easy to solve: require car buyers to file a tax return even if they owe zero tax.

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Arshad

Oct 03, 2018 08:26am

Hell NO ! No more black mailing by any industry. Ban foreign travels too on all billionaires who don't have NTN #.

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Khaled

Oct 03, 2018 08:46am

Is the economic survival of the country more important or the sale of automobile's?

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Faisal

Oct 03, 2018 08:47am

It can be honey trap, allow non-fillers to buy new vehicles but only after paying hefty amount in taxes also FBR should go after them and extract whatever they can.

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Babar Hussain

Oct 03, 2018 08:57am

This should be an indicator for the FBR to see that how many non-filers purchae new cars that the car industry is getting worried? wow... and the working class that has been paying taxes all their service careers, only have enough to buy a 10 year old second hand car.

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amir

Oct 03, 2018 09:06am

government should not bow down to these demands and implement this. this will definitely increase tax base and reverse pressure needs to be applied to reduce prices of locally manufactured cars. Government should also look at companies who do not pay taxes and have given cars to their managers who also do not pay taxes

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suchbaath

Oct 03, 2018 09:09am

It's a two edge sword, at the end the pressure will force them to pay taxes, or go on busses. Just see how India is doing it where owners of cars and houses monitored by their Tax Revenue board.

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Asim khan

Oct 03, 2018 09:24am

Non filers should not allowed to buy any car or land. If they want it they should het themselves registered even for zero tax. FBR is over burdened and lack of work force. They wont be able to follow non filers on basis of shared knowledge by car manufacturers. Let people come to tax net rather then following them.

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SHAHID SATTAR

Oct 03, 2018 09:31am

And the auto sales sector will suffer a loss in sales dropping by one hundred billions, which will go to their credit as black money. Please don't be blackmailed by this or any other sectors who only want to increase the prices of commodities at the cost of the users and the government.

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Imran

Oct 03, 2018 09:33am

So tax filers will be busy searching for documents to file their return, non filers will be driving new cars every year. These three automobile giants have brought this nation to its knees, as people spend all their hard earned money on buying new vehicles, giving no free after sale services and so ultimately poor quality of these cars compel customers to buy a new vehicle after only 2 yrs and the cycle goes on.

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Ali

Oct 03, 2018 09:36am

So they think these non filers will not buy any car and move around on foot. They are trying to fool the Government. What an illogical assumption.

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Hammad

Oct 03, 2018 10:10am

They should allow however a high tax rate should be levied on non-filers. It is not fair to bar someone from purchasing a vehicle.

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Fazi

Oct 03, 2018 10:23am

I would like to emphasize that Pakistan Taxation model as a whole needs to be revisited. If indirect taxation and deduction at source can result in the expected collection then we should do away with filer / non- filer thing as every one enjoying any income or service will be subject to tax. Salary class can be taxed at source and considered final tax liability and all goods being imported or stocked at all shops needs to be tax paid. In this way people will be free from this issue and there will be no confusion. Further for wrong dowers laws can be made and enforced which can ask for the source of income of any asset whenever required. I urge the Finance Minister to look into this.

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Nawaz

Oct 03, 2018 10:29am

Why didn't auto industry mount pressure on PML(N) who introduced the restriction on non filers to buy property and vehicles? Govt failed to ascertain how much damage reversal of ban would cause to their reputation and reform agenda. Acting from expediences not from principles would cause further damage to the reputation of govt and their reform agenda.

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Shahzad

Oct 03, 2018 10:31am

The irony of the matter is that no one is ready ro listen. SRO 1067 has barred many restriction on imports as well. Alternative advise and proposal given since last year but Govt is unmoved. First export has fallen now national gross domestic product go down sharply mean ecnomic activity would go down .

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Shahzad

Oct 03, 2018 10:34am

@Khaled survival of the country is the most. Its the duty of fbr to hunt down those non filer. Why such moves are always to be compliance by the industry.

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Amin

Oct 03, 2018 10:36am

A litmus test for PTI.

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Ahmed

Oct 03, 2018 11:00am

PML-N had a grand plan to increase tax fillers number. Restrictions on non filer to buy cars was one positive step. Now automobile mafia is going to sabotage all these efforts.

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Oct 03, 2018 11:15am

This shows how many tax evaders are enjoying luxury that makes car makers are worried about there revenues. Cat out of box.

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parveez shafi

Oct 03, 2018 11:41am

Look at the longer picture. Short cuts get you were we are today

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Zak

Oct 03, 2018 11:52am

silly, non filers can buy via filers. Dont destroy existing industries, by stopping business. Think before putting forth proposals. Just call the non filers in or do western style, make FBR assessment and send it, non filer will have to hire tax consultant and deny such huge assessments and true figure will be reached. All well, that ends well.

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Leoman

Oct 03, 2018 12:36pm

The discussion on filers or non filers can not end easily but both aspects must be kept in mind. The condition on non filers has some logic but that is a kind of option given to them to think of some other ways to save their taxes. Why can't it be done in this way that the non filers can't buy cars or property unless they become filers and the process of becoming filers must be easier and quicker. So, in this way the number of filers would also be increased and the businesses will also not be in loss.

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