THE PML-N government took a bold and right decision by banning non-filers from purchasing new vehicles and immovable property worth above five million rupees.

The decision would have ultimately broadened the tax base, curtailed black money pumped into real estate sector, stabilised real estate market, and eliminated premium culture in automobile sector.

This is crystal-clear that the highly undervalued real estate sector in the country is a safe haven for black money earned through corruption, kickbacks, extortion and tax evasion. The current government’s decision of lifting this ban is regressive and detrimental to tax culture.

The decision will promote tax evasion, black economy in real estate sector, and premium culture in auto sector.

The reason given by the finance minister for this decision to encourage expatriate to invest in the country is superficial. As per Income Tax Ordinance 2001, expatriates are non-residents and are not required to file income tax returns for immovable property.

Hence, the condition of being a filer is not applicable to them. They were already exempted from this ban. In fact, the government seemed to have come under pressure from real estate mafia and the auto industry. Strangely enough, the government, which came to power with a promise to end corruption and tax evasion, is intentionally or unintentionally promoting corruption and tax evasion.

Tax evasion is rampant and pervasive. The government should facilitate income tax filers and clamp down harshly on tax evaders. It is time to move forward and create more hurdles for black economy rather than facilitate tax evaders.

Ali Hassan

Karachi

Published in Dawn, September 29th, 2018