Govt offers non-filers buying cars but jacks up registration rates

ISLAMABAD: The government has proposed lifting ban on purchase of cars up to 1300cc for non-filers but also jacked up tax rates for registration of vehicles through finance supplementary (second amendment) bill 2019.

Through the second finance bill introduced into the Parliament by the PTI-led regime, the government increased tax rates in first slab on buying of car up to 850cc from Rs10000 to Rs15000 for non-filers. For second slab from 851cc to 1000cc, the tax rate jacked up from Rs25000 to Rs37500. For third slab from 1001cc to 1300cc the tax rate increased to Rs60000 from earlier rate of Rs 45000.

During the post mini budget press conference when the journalists asked about more slabs inserted into finance bill, the Minister for Finance Asad Umar replied that these slabs were meant for non-resident Pakistanis as they would have to pay more tax to get cars. Hammad Azhar, Minister of State for Revenues said on the occasion that when the non-filers could buy plot up to Rs5 million then they decided to grant permission to non-filers to purchase cars up to 1300cc.

On purchase of cars for 1301cc to 1600cc for non-resident Pakistanis, the tax rate has been increased to Rs150000 from earlier tax of Rs100000. For 1601cc to 1800cc, the tax rate increased to Rs225000 now against earlier tax amount of Rs150000.

For 1801cc to 2000cc, the tax rate increased fromRs200000 to Rs300000. For last seventh slab mentioned in the second amendment in finance bill 2019, the tax rate increased to Rs450000 against earlier rate of Rs300000.

Interestingly, the latest finance bill proposed by the PTI-led government did not mention eighth and ninth slabs which mean that they did not hike tax rates for 2501cc to 3000cc and above 3000cc. In the last approved finance act in the tenure of the PML-N led regime the tax rate for eighth and ninth slabs for non-filers had imposed tax rate of 400000 and 450000 respectively.

One FBR official told The News on Thursday that the FED on vehicles of over 1800cc increased in this mini budget so the government did not jack up another tax rate through this bill.