Research
Proposal Submitted to the
National
college of business administration & economics, Lahore
In
partial fulfillment of the Requirements for the degree of
LLM
Submitted
By:
ASIF
ALI
SESSION:
Spring 2017-2019
REGISTRATION
NO: 49
Supervisor
DR.
MUHAMMAD RAMZAN WATTO
NATIONAL COLLEGE OF BUSINESS ADMINISTRATION & ECONOMICS
LAHORE
Table of
Contents
1.
Introduction………………………………………………………2
2.
Literature Review………………………………………….……..4
3.
Research Objective……………………………………………….4
4.
Scope & Aim of Study……………………………………………5
5.
Question of Research……………………………………………..5
6. MethodologyofResearch………………………………….......5
A
STUDY OF TAX LAWS RELATING TO TRANSFER OF VEHICLE
INTRODUCTION:
A tax could be a necessary money charge or another kind of levy obligatory upon by a governmental
organization so as to
fund numerous public
expenditures. A failure to pay, together
with evasion of or resistance to taxation, is punishable by law.
Taxes include direct
or indirect taxes and will be
paid in cash or as its
labor equivalent.[1]
The automobile business is a wide scope of organizations and associations
engaged with the structure, improvement, and assembling, showcasing, and moving
of engine vehicles, some of them which are called automakers. It is one of the
world's biggest financial divisions by income.[2]
Pakistan Association of Automotive parts and
Accessories Manufacturer “The auto-mobile industry has always been part of
the backbone of any economy, and continues to play an integral part in its
success or failure. This is because the auto-mobile industry is one of the few
in the world that utilized practically all technologies available to the time”. (PAAPAM)[3]
Article
24 of Constitution of Islamic Republic of Pakistan 1973,talks about moveable
& immoveable property. It is a fundamental right of every citizen to
acquire, hold and dispose of property according with legal process. West
Pakistan Motor Vehicles Ordinance 1965 is an ordinance to amend and consolidate
the law relating to motor vehicles in all provinces of Pakistan except Azad
Jammu & Kashmir.[4]
Section 23(1) of West Pakistan Motor Vehicles Ordinance 1965 talks about the
registration of Motor Vehicles in which No
individual will drive any automobile and not proprietor of any automobile will
cause or allow the vehicle to be driven in wherever except if the vehicle is
enrolled as per Ordinance and accordingly the vehicle conveys an enlistment
mark showed inside the recommended way.[5]
According to Section 32(1) of West Pakistan Motor
Vehicles Ordinance 1965 ownership of Motor vehicle registered under this
Ordinance may transfer within 30 days
According
to West Pakistan Motor Vehicles Taxation ACT 1958 Section 2(c)
“Motor
vehicles includes a vehicle, carriage or other means conveyance propelled, or
which may be propelled on a road by electrical or mechanical power either
entirely or partly”[6]
The
concern topic is also related to A Study of tax laws relating to transfer of
vehicle is debatable topic because the National
Assembly of Pakistan had passed the Finance Supplementary (Amendment) Bill
2018. [7] Introduction of
section 227C was a basic step to curb parking of non taxable money in
acquisition of stabile property and new motorized
vehicles, so as to strengthen efforts
being created for broadening of the tax collection and
to induce a rise within
the variety of comeback filers, a
replacement section 227C was inserted through the Finance Act, 2018
whereby applications for booking, registration or purchase of a
replacement domestically factory-made motorized vehicle or
for the primary registration of associate degree
foreign vehicle shall not be accepted or processed by any vehicle
registering authority or a manufacturer of a motor vehicle unless the
person may be a filer as outlined in section 2(23A) of
the Income Tax Ordinance 2001. it might even
be pertinent to say here that every one motorized
vehicles irrespective of their engine capability would
fall inside the ambit of this fresh inserted
section 227C of the Ordinance. Moreover, it might even
be pertinent to say here that the term motorized
vehicle would come with inside its extent every
type of cars together with cars, jeeps, vans, trucks,
etc, no matter whether or not it's for
personal or business use. However, section 227C doesn't
be motorcycles, rickshaws and motorcycle rickshaws i.e. condition of being
a filer shall not be persons buying domestically factory-made motorcycles,
rickshaws and motorcycle-rickshaw.
After the Finance Supplementary (amendment) Bill 2018, the
non-filers had no facility to purchase a car, adding that under the new reforms
package, they would be allowed to purchase locally manufactured vehicles up to
1300CC.
Now, The Government of Pakistan lifted ban on purchase
of vehicles for non-filers for locally manufactured cars up to 1300CC capacity
through Finance Bill(Second amendments) 2019. , in addition to facilitating the
non-filers, this measure would also boost automobile production and promote
businesses of all the sectors linked with automobile industry.
LITERATURE REVIEW:
In an
article titled “A Brief Look at the Automobile Industry of Pakistan” (The
standard tech published: April 22, 2014) Ajmal states that the contribution by
the
automotive business towards the economic development of Asian
nation is kind
of outstanding and vital for economic process. The
industry’s contribution to value is vast, considering the
actual fact that it enhances the financial gain level of nation
by being the second largest tax money handler,
eliminates state a significant issue faced by
developing and underdeveloped countries through providing employment and
eventually it adds to the producing sector
by exploit components from native makers[8].
.It would be easy matter of
undeniable fact that entities achieving the identical level of financial gain
ought to carry the identical level of tax burden.[9] Both the structure and construction of a legal
system are necessary for all countries.
Clear rules contribute to the rise in foreign investments, creating the economy of a given
state enticing during this respect.[10] We find
that, whereas there's little doubt that tax policy will influence economic decisions, it is by
no suggests
that obvious, on Associate
in Nursing ex ante basis, that tax rate cuts can ultimately result in a bigger economy.[11]
Followings are the relevant laws
·
Constitution of Islamic Republic of Pakistan 1973,
·
Transfer
of Property Act 1882
·
West
Pakistan Motor Vehicles Ordinance 1965
·
Pakistan Motor Vehicles Taxation ACT
1958
·
Income Tax Ordinance, 2001
·
Sales Tax Act 1990
·
Custom Act 1969
RESEARCH OBJECTIVES:
The need
to study ban on transfer of vehicles to non-filers are as following;
Ø To identify the main problems in which non filers avoids to
register themselves under FBR.
Ø To analyze possible ways to eliminate the problems for non filers.
Ø To determine all causes in which non filers avoids to register
themselves under FBR in Pakistan. [12]
All industries need a
sound industry that makes quality potential, while not quality trade would be restricted towards internal atmosphere and completely cutoff from external environment, there's have to build the
bottom for developing infrastructure, that base is none apart from development of native industry.
SCOPE
AND AIMS OF STUDY:
The purpose of the study is to
find out problems in the area of distinct matters that all persons are equal in
eye of law. the importance of this trade is wide go because it not solely has its own impact within the economy however additionally plays the subsidiary role for alternative industries performance that are for the most part dependent upon
the mode of transport whether or
not it's transport
of raw materials, labor, machines, goods etc. in brief all the industries are obsessed with this trade once it involves quality.
QUESTION
OF RESEARCH:
·
To analyze the legislation regarding the
registration of motor vehicles.
·
To review the issue of Non-Filers regarding the
purchase of motor vehicles.
·
To discuss about different ways of transfer.
·
METHODOLOGY OF RESEARCH:
The method of
methodology is descriptive analysis, assortment of content from numerous sources and analyses.
This analysis paper can look & examine the
structure of the taxation & tax on motorized vehicles. For this purpose it'll undertake secondary analysis on the
event of taxation law & undertake a review of obtainable literature on the topic. The analysis shall be carried victimization each primary & secondary
sources
[4]
Constitution of Islamic Republic of Pakistan 1973
[5]
West Pakistan Motor
Vehicles Ordinance 1965
[6]
West Pakistan Motor
Vehicles Taxation ACT 1958
[8]
Automobile Industry of
Pakistan” (The standard tech published:
April 22, 2014)
[9]
University of Economics of Katowice, Journal of Economics
and Management
ISSN 1732-1948 Vol. 30 (4) •
2017
[10]
University of Economics of Katowice, Journal of Economics
and Management
ISSN 1732-1948 Vol. 30 (4) •
2017
[11]
Economic studies at Brooking Sep 2014,
Effects of Income Tax Changes Economic Growth William G.Gole
[12]
Micro think institute International Journal of Accounting and
Financial Reporting
ISSN 2162-3082 2014, Vol. 4, No. 2
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