Business Desk 
Feb 24, 2025
The Pakistan Business Council (PBC) has recommended that the Federal Board of Revenue (FBR) restrict the number of cars one can purchase.
This action would prevent benami transactions, which involve individuals purchasing cars in others' names in order to conceal assets and evade taxes.
Currently, there is no law regulating the number of cars an individual can register in Pakistan. The PBC opines that this loophole is being exploited by people and companies who purchase several cars and register them in the names of fictitious or proxy individuals.
This mode of practice, also referred to as benami ownership, enables individuals to evade taxes, hide wealth, and even utilise vehicles for money laundering.
How many cars can you buy in Pakistan according to PBC ownership limit?
To solve this issue, the PBC has proposed a cap of 10 cars per person. This means no individual should be allowed to register more than 10 vehicles in their name across Pakistan. The PBC believes the rule will:
- Stop illegal financial activities related to car purchases.
- Improve tax collection and transparency in car ownership.
- Help the FBR track and tax car transactions properly.
- Prevent hoarding and artificial demand, which can lead to higher car prices.
According to PBC, this ban will not affect the buyers or companies that require cars for business. Rather, it will be aimed at individuals who are misusing the system to conceal assets and avoid taxes.
Moreover, the council recommends that this measure be coupled with enhanced digital tracking systems and routine audits to keep car registrations under check.
How will government implement this rule?
To enforce this policy, the PBC recommends that the FBR work with the Excise and Taxation Departments across Pakistan. Some of the steps suggested include:
- Stricter monitoring of vehicle registrations.
- Digital alerts to flag unusual car purchases.
- Regular audits to catch benami transactions.
The PBC is of the view that this proposal will enhance financial accountability and check tax evasion in the auto industry. It is now left to the FBR to make a decision about whether or not to include this suggestion in the 2025-26 budget.
