Sources said that the Senate Standing Committee on Finance would start review of the Finance Supplementary (Amendment) Bill, 2018 on Monday (September 24). Till Finance Supplementary (Amendment) Bill, 2018 is signed by the President, the restriction imposed on non-filers to purchase immovable property or new motor vehicles would remain intact.
According to the FBR, the section 227C was introduced through Finance Act, 2018 whereby restriction was placed on non-filers to purchase immovable property or new motor vehicles. Through Finance Supple-mentary (Amendment) Bill, 2018, section 227C is proposed to be abolished. The Finance Minister in his speech has explained the rationale of this measure that such restriction had created difficulties for non-resident Pakistanis, as they were not required to file tax return for their foreign-source income but were restricted from buying property or motor vehicle.
Introduction of section 227C was a fundamental step to curb parking of untaxed money in acquisition of immovable property and new motor vehicles, to broaden the tax base and increase number of tax filers. The practical problem as highlighted by the Finance Minister could have been addressed by appropriately amending the law, instead of altogether abolishing section 227C, the FBR added.