Overview
The government aims to urge taxes from non-filers they might increase the burden of a tax. The Pakistan Business Council (PBC) has suggested that the Federal Board of Revenue (FBR) increase advance taxe on utility bills, real estate transactions, and luxury expenditures.
The necessary step is taken to improve the tax system in Pakistan and ensure the right earning value for every single. Vehicle owners are also counted in the additional advance tax and the purpose of council suggests a heavy tax on the vehicle owners. The Council proposed an annual advance income tax to amount to Rs. 250,000/per year for individuals who are own vehicles with engine capacity of 2000cc and above and for non-filer.
The suggestion will be implemented once the FBR approved it, and there are high chances of improvement. Because the government has no intention to provide relief to non-filer in any case.
Current Advance Income Tax Filer and Non-Filer
The proposal also suggests an increase in advance income tax on non-filer while buying a car [under section 231B]. Here are the previous taxes applied to filers and non-filer.
| Category | Current tax for non-filers | Proposed tax for non-filers |
| 1800cc-2000cc | Rs. 600,000 | Rs. 2,000,000 |
| 2001cc-2500cc | Rs. 900,000 | Rs. 2,500,000 |
| 2501cc-3000cc | Rs. 1,200,000 | Rs. 3,000,000 |
| Above 3000cc | Rs. 1,500,000 | Rs. 4,000,000 |
Moreover, the PBC has also suggested increasing the advance income tax on the sale of vehicles above 2001cc engine capacity. This could be increased from Rs. 1,200,000 to Rs, 2,400,000 for non-filers before registration using their own funds. If it’s implemented the amount will be double that of the previous.
The Council proposed an advance tax collection at the rate of 7.5% on domestic utility connections registered under the name of non-file, provided their monthly bills exceed Rs. 25,000 or more.
It seems the non-filer will pay heavy taxes to the government. This is not the first time, the government has announced several heavy fines and taxes to non-filer in previous history.
The upcoming budget will have some special notices for vehicles and non-filers. Taxes are the source of government income and they must ensure a smooth system to collect amounts.
Conclusion
The tax collection system in Pakistan is real disturb department. Due to the unstable tax collection system, Pakistan’s economy falling down. Luxury car vehicle owners drive freely on the roads without paying taxes. Besides this, the Excise department is also active and start operations against non-registered vehicles and not allowed them to drive freely without car registration.
