The government has decided to penalize the motor vehicles registration authorities, property registration authorities and vehicles booking companies where such authorities book/register or sell vehicles/properties to non-filers of income tax returns. The government has proposed amendment in the section 182 (Offences and penalties) of the Income Tax Ordinance 2001 through amended Finance Bill 2018.
Under section 182 (Offences and penalties) of the Income Tax Ordinance 2001, any person who commits any offence shall be liable to specified penalties.
Under section 227C of the Income Tax Ordinance 2001, 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 and 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.
Through amended Finance Bill 2018, 3 percent of the value of motor vehicle/property would be paid as penalty by person who would register or accept application or process application of non-filer of income tax return. Industrialist who would accept/process application of non-filer for purchase of locally manufactured motor vehicle would be subjected to 5 percent of value of the motor vehicle, as penalty.