KARACHI: The Revenue Division Ministry of Finance has lifter the condition of NTN holder to buy a motor directly from the manufacturer/assembler in Pakistan.

The local assemblers/manufacturers of motor cars have been allowed through a notification to sell the vehicles to anyone having a valid computerized national identity card (CNIC).

Earlier, the assemblers could only sell the vehicles to an NTN holder. However, the companies are still required to furnish this record to the Federal Board of Revenue (FBR) on monthly basis.

An official said this move is contrary to the dream of broadening an extremely narrow tax base and will undermine efforts to document the economy.

The NTN condition had been imposed to capture those among the wealthy who do not pay taxes or file income tax returns. Under the law, anyone with an annual income above Rs500,000 is liable to file an income tax return.

It is the second decision in recent months taken to appease the automobile lobby. Earlier, the government reduced the age-limit for the import of used cards.