FBR Explains Exemptions, Penalties For Violation of Ban on Non Filer




The government has tightened the noose around the non filers to make expansion in extremely low tax base of the country.

The government in the mini budget being passed by the national assembly has restored the curbs on the non filer to buy automobile or property in a bid to make expansion in the tax base.

The FFR has explained through a income tax circular issued here the ban on transfer of immoveable property or new vehicle to t he non filer.

In order to reinforce the efforts being made for the expansion in the tax base to bring an increase in the number of return filers a new section 227c was being inserted by the finance act, where a bar has been placed over the acceptance and procession of applications for booking registration or purchase of a new vehicle or for the first registration of the imported vehicle by any vehicle registering authority or the manufacturer of the vehicle , unless the person is a filer as defined in section 2(23A).

FBR Non Filer

FBR Non Filer

Such rules and restrictions are also placed over the authorities responsible for the registration, recording or attesting transfer of any immovable property increasing more than five million rupees or any request by the person for the registration, recording or attesting transfer of immovable property increasing more than 5 million would not be accepted unless that person s being defined as filer according to the section 2(23A).

This restriction resulted quite difficult time for the category of persons including low income earning individuals who want to purchase motorbike, and for the person who wants to acquire inherited property. This restriction also have negative impact o the individuals desiring to invest in the real estate sector. In order to over come the difficulties faced by such categories of person the finance supplementary bill, 2018 make sure the exclusion of such people from the preview of section 227C of the income tax ordinance.


FBR said that the purchase of local or imported vehicle by non filers shall not extend to t he purchase of motorbike that have the engine capacity of less than 200cc.

Beside this the non filers are also going to be at liberty to purchase, agriculture tractors, rickshaws, motorbike or any other vehicle having engine capacity less than 200cc. furthermore any person holding Pakistan origin card,  or a national identity card for overseas Pakistanis who can produce a certificate from the scheduled bank verifying receipt of foreign exchange remitted from  outside Pakistan, with the help of normal banking channels with in the period of sixty days prior to the date of booking, registration or purchase of vehicle shall also not have to adhere to the condition of being a filer for the purchase of locally or imported manufactured vehicle.




In order to enforce then ban on purchasing motor vehicle or immovable property worth more than 5 million by a non filers the finance supplementary act, envisages levy of various penalties upon local manufacturers of vehicles Excise and tax department responsible for the registration, recording and attesting transfer of immovable properties.

The FBR said that the local motor vehicle manufacturer accepting or procession the application for booking or purchase of local manufactured vehicle by a non filer must be liable to pay the penalty of 5% of the actual value of the motor vehicle according to the section of 182.

On the second phase, the excise and taxation department, accepting processing or registering an application for the registration of vehicle or the first time registration of vehicle of local manufacturer by non filer must be liable to pay the penalty of 3% of the actual value of the motor vehicle.

If any authority responsible for the registration, recording or attesting transfer of immovable property worth more than 5 million in such case, the authority shall be liable to pay the 3 % o the actual value of the immovable property, it would be pertinent to mention that authorities responsible for registering, recording or attest transfer of immovable property includes housing authority, housing societies, co operative societies, registrar of properties and many more.

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