Online Car Dealers To Be Brought Into the Tax Net

The government of Punjab has decided to bring the online car dealers and sellers in the tax net similar to how showrooms in the province are treated.

Punjab Finance Minister Hashim Jawan Bakht stated this while chairing a meeting along with Punjab Minister for Trade Mian Aslam Iqbal, Excise and Taxation Minister Hafiz Mumtaz and the office-bearers of Lahore Car Dealer Association here on Wednesday.

During the meeting, the ministers listened to the problems faced by the LCDA and agreed to reduce the return filing duration for car dealers. He said the taxation system was being completely automated and that a mobile application was being launched soon specifically for filing returns.

The minister added that online car dealers and sellers would also be brought into the tax net, as the government was being updated with modern technologies, while the federal government introduced e-commerce, which was being implemented in the province as well.

The minister clarified that Punjab Revenue Authority (PRA) had imposed Punjab General Sales Tax only on the commission of car dealers and assured the car dealers of seriously considering their demands by making the PRA’s complaint cell effective.

He also assured that the issues of the car dealers will be taken up at the provincial and federal platforms to resolve their grievances.

Provincial Trade and Industry Minister Mian Aslam Iqbal said the government was making sincere efforts to resolve car dealers’ issues by bringing together all relevant departments in one place. He also assured that a committee will be constituted in which the CTO (Chief Traffic Officer) will be included to resolve traffic issues on city roads.

Punjab Excise and Taxation Minister Hafiz Mumtaz briefed the meeting about the delay in computerized number plates was due to legal issues, while the issues of smart cards will be resolved soon. He directed Excise and Taxation officials to hold a meeting tomorrow (Thursday) to resolve these issues.

The car dealers association’s representatives thanked the ministers for paying attention to their problems. LCDA President Shahzada Saleem Khan said that the dealers were paying taxes under different heads, however, there was a need to resolve system problems, besides bringing the online car dealers like OLX and Pakwheels, etc. into the tax net.

  • The Climate Change initiatives of UN worldwide would provide a relief for autos, cars, motor cycle, bus, which are compliant to EV to be tax free. May I suggest the honorable Minister to consider the conversion of autos from petrol/cng/diesel to EV or Hybrid to be exempt from Federal taxes, as an adherence to policies of Climate Change from Pakistan

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