Petition filed in IHC against ban stopping non-filers from purchasing new cars


The Islamabad High Court (IHC) on Tuesday issued notices in a petition challenging a ban on buying of new 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.

The petitioner, an authorized 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 said 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.

Babar Awan submitted that the move to bar non-foilers from purchasing vehicles was illegal and unconstitutional. He added that if someone is purchasing a used Mercedes there is no bar on him/her.

He further argued that the Parliament cannot legislate any law against the wishes of the people. The Parliament is required to make laws for the welfare of the people.

The petitioner said, “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 court had adjourned the hearing for two weeks and issued notices to the secretary of finance, FBR chairman and DG for Motor Registration.

by Aqsa Mirza