IHC issues notices in petition against ban

RECORDER REPORT

ISLAMABAD: The Islamabad High Court Tuesday issued notices in a petition challenging ban on buying of new four-wheel vehicles by non-filers of income tax returns.

A single bench of IHC comprising Justice Aamer Farooq heard the petition and directed the attorney general to assist the court in this matter on the next hearing.

Amir Awan, a citizen, filed a petition against section 227C to the Income Tax Ordinance, 2001 through Finance Act, 2018. The petition is filed through Babar Awan Advocate and it made Federation through finance secretary and ex-officio chairman Federal Board of Revenue (FBR), director general (DG) Vehicle Registration Wing, Excise and Taxation and commissioner FBR as respondents.

He prayed to the court that section 227-C (a) of the Income Tax Ordinance, 2001 may be declared completely without jurisdiction, unconstitutional, illegal, void ab initio and of no legal effect.

The petitioner, an authorised dealer of Indus Motor Company Limited adopted that amendment introduced in section 227(c) of Finance Act 2018, offends and blatantly violates the provisions of (A) (B) (C) to Article 18 of the Constitution of Pakistan 1973 which guarantees fundamental freedom of business and trade.

He contended that section 227-C is also discriminatory in nature. It is only in relation to motor vehicles and immovable property above Rs 5 million that impediments have been introduced transaction with or by non-filers.

“This is a clear violation of Article 25 of the Constitution of Islamic Republic of Pakistan, 1973 as there is no reasonable justification based upon any objective criteria or intelligible differentia so as to introduce such a hindrance only on immovable properties and motor vehicles,” the petitioner maintained. To increase the number of return filers, the government has inducted a new section 227C to the Income Tax Ordinance, 2001 through Finance Act, 2018. Then, the Federal Board of Revenue (FBR) put a complete ban on purchase of four-wheel vehicles, regardless of engine capacity, by a non-filer of income tax return. Under the section, applications for booking, registration or purchase of a new locally manufactured motor vehicle or first registration of an imported vehicle would not be accepted or processed by any vehicle registering authority or a manufacturer of a motor vehicle unless the person is a filer and appeared on the Active Taxpayers List (ATL).