The federal government has so far not issued any notification regarding the abolishment of restriction imposed on non-filers for the purchase of new vehicles. The government through Finance Supplementary (Second Amendment Bill) 2019 proposed Clause 4(8) amendment to section 227C to relax restriction for non-filers on purchase of locally manufactured motor vehicles up to 1300CC. Through said amendment, the restriction on purchase of locally manufactured motor vehicles above 1300 cc was proposed to be abolished for non-filers.
The said amendment, proposed during the announcement of ''The Reform Package'' by the finance minister on January 23, 2019, was widely appreciated by the stakeholders, who were of the view that this decision would support local industry as the government by lifting the ban on purchasing of vehicles from non filers would not only get more revenue but would support allied and vending industry. In addition, it will also create investment friendly environment in the country. However, the notification in this regard has so far not been issued despite the lapse of almost two weeks, putting the auto sector in uncertain state.
When asked, dealers said that since the announcement of lifting ban on purchasing of vehicles from non filers, they had been receiving immense number of queries for booking or cash purchase of vehicles on daily basis. "Following the non-issuance of notification regarding the relaxation from restriction for non-filers on purchase of locally manufactured motor vehicles up to 1300CC, we are not only refusing to process non-filers'' booking requisites but also not selling vehicles to non-filers on cash payments," they said.
Resultantly, the auto sales, which has witnessed 3 percent decline in 1HFY19, remain unable to get momentum so far. Moreover, they also urged the authorities concerned to issue notification shortly as it would not only create positive impact on ailing auto sales but would also generate substantial revenue for the FBR, which was presently struggling to meet its annual revenue budgetary target with over Rs. 190 billion shortfall.
Comments
Comments are closed.