ISLAMABAD: Islamabad High Court (IHC) issued notices on 6.11.2018 to Federal Board of Revenue (FBR) and finance ministry over plea seeking declaration of an amendment of Income Tax Ordinance 2001 illegal that stopped non-filers from purchasing new car.
The government had made amendment in the Income Tax Ordinance 2001 during May 2018 while inserting Section 227 C in the Ordinance for broadening of tax base. The amendment says, “Any application for booking, registration or purchase of a new locally manufactured motor vehicle or for first registration of an imported vehicle shall not be accepted or processed by any vehicle registering authority of Excise and Taxation Department or a manufacturer of a motor vehicle respectively, unless the person is a filer”.
According to the Finance Act 2018, the new Section 227C of the Ordinance has imposed restriction on purchase of certain assets. Notwithstanding anything contained in any law, for the time being in force, any application or request by a person to any authority responsible for registering, recording or attesting transfer of any immovable property , exceeding Rs 5 million for registering or attesting the transfer shall not be accepted or processed by such authority, unless the person is a filer.
Excise and Taxation Department Islamabad has declined to register or transfer a total of 4641 motor vehicles of the petitioner Amir Awan of Islamabad who is authorized dealer of an automobile company (Indus Motor Company Limited).