ISLAMABAD – Authorities in Pakistan are tightening noose around non-filers with New Tax Law Amendments as government is preparing to implement stricter measures to expand tax base.
The tweaks in Tax Law Amendment Bill 2024-25 aim to curb tax evasion and enforce accountability, making it increasingly difficult for non-filers to engage in major financial transactions including new cars.
Key parts of the amendment include Vehicle Purchase Restrictions as those dodging tax net will be restricted from purchasing vehicles with engine capacities exceeding 800cc.
Property and Share Limits also come on amendments, and non-filers will be prohibited from acquiring property or purchasing shares beyond a specific limit. Non-filers will not be allowed to open bank accounts or conduct certain banking transactions.
Bank accounts of unregistered businesses will be frozen, and these businesses will face restrictions on property transfers. The government will be authorized to seize the properties of unregistered individuals engaged in business activities.
Meanwhile, businesses that fail to register for sales tax will see their bank accounts frozen, and property transfers will be restricted. The proposed amendment also includes provisions where the parents, children (under 25), and spouses of filers will be treated as filers for tax purposes.
Federal Board of Revenue (FBR) will compile and share list of non-filers, freezing accounts of those included. These measures are expected to come into effect after a notification by the federal government.
This move is seen as a significant step towards improving tax compliance and expanding the tax base in the country, where tax net is low.
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