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Sharp decline in sale of auto rickshaws after ban on non-filers

Sharp decline in sale of auto rickshaws after ban on non-filers

KARACHI: The ban on non-filers has also hit the auto rickshaw industry where sudden drop has been witnessed in the sale of the vehicles.

The ban was introduced by the Finance Supplementary (Amendment) Act 2018. The Sindh Excise and Taxation Department, which registers the vehicles, was communicated the ban more than a week ago. “We haven’t registered any rickshaw since October 17,” an official of the department said.” Up to 40 registration applications which were partially processed by October 17 have also been withheld.” The disclosure manifests that these vehicles are mostly bought by non-filers whether the buyer is a driver or an investor.

Under the new policy, non-filers cannot buy and register in their names the vehicles with engine displacement of 200 cubic centimetres (CC) and above engine capacities. Only the vehicles and motorbikes below 200CC can be bought by non-filers. The rickshaws come with 200CC engine displacement.

Through the Supplementary Finance Act, a new section 227C was inserted in the Income Tax Ordinance 2001, which placed a bar on accepting or processing applications for booking, registration or purchase of locally manufactured vehicles. Interestingly, the Federal Board of Revenue’s (FBR) October 24 circular notes that the taxation authority has tried to avoid causing hardship to the low income groups by lifting certain restrictions.

“… non-filers shall also be at liberty to purchase agricultural tractors, motorcycle rickshaws, rickshaws and any other motor vehicle having engine capacity less than 200CC,” reads the circular. It does not mention rickshaws with 200CC or above capacities.