From Monday onward, only people who file their taxes will be allowed to buy vehicles.
The Federal Board of Revenue (FBR) has prohibited people who do not file their taxes, or non-filers, from buying cars and motorcycles. Their requests to get their vehicles registered will not be entertained either.
As part of this move, non-filers will also not be allowed to buy property worth more than Rs5 million.
FBR officials think this step will increase the number of tax filers in Pakistan.
The new tax laws will be applicable from Monday.
Why file your tax returns
Filing tax returns may seem like a long, difficult and unnecessary process but the pros outweigh the cons.
By filing your tax returns you are entitled to
- Lower taxes on bank transactions
- Lower taxes when buying property or cars
- Tax refunds
How to do it
The process to file your returns is pretty easy and can be done online.
The FBR has an online income return system called IRIS, which can be accessed at www.iris.fbr.gov.pk. You register for it with your 13-digit identity card number or using your seven digit national tax number.
There is a section called ‘Return of Income’ through which users can click on the ‘Declaration’ tab and scroll through the options. For people whose tax is deducted at source, meaning your income tax is already cut before you get your salary, all you have to do is declare it under the ‘Adjustable Tax Regime’ section with the relevant code.
The FBR website also has a FAQ section to guide you through filing your returns.
Ashfaq Tola, an economic analyst, lauded the decision taken by the revenue board.
“This is a good step,” he said. “The facilities provided to citizens of Pakistan are not provided anywhere else.”