'Non-filers of returns are not tax evaders'

Says non-filers most of time pay more tax than filers

LAHORE: The constraints faced by non-filers of tax returns are hampering the overall businesses environment because such limitations have caused great trouble for two of Pakistan’s prominent money-making sectors. According to the business community and other stakeholders, the automotive and realty sectors are the primary victims of this policy.

Some leading Japanese car manufacturers recorded lowerthan-expected sales in 2018 compared to previous years. Additionally, they are also anticipating that the numbers will drop further in the current and coming fiscal years. The scenario in the real estate market is not too different where low trading volumes coupled with accountability measures have dented investor sentiments.



“There is a difference between non-filers and tax evaders,” Lahore Chamber of Commerce and Industry (LCCI) President Almas Hyder emphasised while talking to a group of journalists. “This difference should be clearly defined by the current government.” Elaborating that a nonfiler is not a tax evader because he pays higher tax on many occasions as opposed to the filer, he asked why the government had barred them from booking new vehicles? He insisted that tax evaders should be dealt with strictly but noted that the government had disenfranchised the agriculture sector, tribal areas, overseas Pakistanis, people in Azad Jammu and Kashmir and others.

“As a result, all of them are unable to purchase a new car or property,” Hyder pointed out. “All such practices have hit businesses and markets.”

On the other hand, the Federal Board of Revenue (FBR) could easily track those who purchased new cars as the National Database and Registration Authority (NADRA) shared all the data with it, he said. The previous Pakistan Muslim League-Nawaz (PMLN) government had barred non-filers of tax returns from purchasing a new vehicle or property amounting to over Rs5 million.

The current government reversed the decision after coming to power but pressure from the opposition force it to back off. Indus Motor Company CEO Ali Asghar Jamali has lamented that the restriction on sale of vehicles to the non-filers had harmed the industry. “Just when the auto policy started bearing fruit, the decision was imposed which halted its growth,” added Jamali.

According to data provided by the stakeholders, the demand for vehicles has been continuously declining for the past couple of months. The production of 1,300cc cars fell 13% in November and close to 43% in December as compared to October 2018.