Pakistan’s authorities are trying to lessen the talks around non-filers with New Tax Law Amendments as the government prepares to execute tougher action to extend the tax base.
The modifications in the Tax Law Amendment Bill 2024-25 are done to end tax evasion and enforce accountability, making it extremely challenging for non-filers to be involved in big financial transactions involving new cars as well.
The important part of the ordinance is Vehicle Purchase Restrictions, as those who avoid paying tax nets will not be able to buy vehicles with engine capacities surpassing 800cc.
Property and Share Limits are also a part of the bill as well and non-filers will be exempted from having any sort of property or purchasing shares more than a specified limit. Non-filers will not be able to open bank accounts or conduct certain banking transactions as instructed by the authorities.
Bank accounts opened with unregistered names would be frozen, and these businesses would face transfers. The government will then be authorized to seize the properties of those individuals engaged in business proceedings.
Moreover, businesses failing to register for sales tax would have their bank accounts frozen, and property transfers would be limited. The envisioned bill also includes possibilities where the parents, children (under 25), and spouses of filers may be treated as subjects (filers) for tax purposes.
Federal Board of Revenue (FBR) is preparing, compiling, and ready to share a list of non-filers, freezing accounts of those included in it. These steps are to be followed after an official notification by the federal government is given.
This action is regarded as a big step towards improving tax agreements and growing the tax base in a country.
