The Senate Standing Committee on Finance has rejected the government’s recommendation to allow non-filers to purchase cars in Pakistan up to 1300cc.

The Senate panel headed by Senator Farooq H. Naek has proposed that the sale of cars to non-filers should be limited to 800cc. Senators were of the view that permitting non-filers to purchase sedan cars and property will not be beneficial for the country.

Earlier, Finance minister, Asad Umar, presented Finance bill 2019 in the national assembly and recommended that non-filers should be allowed to purchase cars up to 1300cc. PTI is of the view that exclusion of non-filers is costing damage to the auto industry and government’s annual revenue.

The auto manufacturers have welcomed the Finance bill 2019 in Pakistan. Toyota and Suzuki termed it as a refreshing change as they witnessed cars sales decline in the previous year due to the ban imposed on non-filers. However, FBR noted that tax net was increased last year probably due to the enforcement of this ban.

The federal government has already imposed restrictions on the imported cars because the local auto industry and new entrants were not happy about the scenario. The new car import policy will incur $1 billion loss to the national exchequer. Now the government wants to flourish the local auto industry and needs the revenue generated by the registration of new cars.

Honda even asked the government to raise the bar to up to 1350cc so that non-filers can buy their popular Honda city car. The suggestion made by the Senate Committee is logical as the lifting of the ban imposed on non-filers will encourage citizens to remain outside the FBR radar which is not good for the overall economy. These days a 1300cc car is not cheap at all as it costs up to 2 million rupees in Pakistan. The government should realize that the one who has an extra 2 million rupees needs to be in the tax net.