KEY POINTS
- Non-filers will be prohibited from buying property beyond a certain limit.
- They will not be able to make banking transactions beyond a certain limit.
- Bank accounts of the non-registered business persons will be frozen.
ISLAMABAD: Pakistan’s government on Wednesday introduced a bill in the parliament seeking to further tighten the grip on non-tax filers.
Finance Minister Muhammad Aurangzeb, proposed an amendment bill in the National Assembly, titled the Tax Laws (Amendment) Bill, 2024.
Under the bill, non-filers will not be allowed to buy property beyond a certain limit. The amendment also proposed that non-filers would be prohibited from purchasing shares above a certain limit and wouldn’t be allowed to open a bank account.
The bill suggested that non-filers would be restricted from making bank transactions beyond a specified limit. However, they will still be permitted to purchase motorcycles, rickshaws, and tractors.
Moreover, bank accounts of the non-registered business persons will be frozen and they will be barred from transferring property. The amendment also proposed that the government will be allowed to seal the property and business of non-filers.
The legislation also proposed that the accounts of those persons, who are on the list of Federal Board of Revenue (FBR), will be frozen.
Under the proposed amendment, FBR will also be able to freeze bank account(s) and stop property transfers over failure to register with the top collection body for filing sales tax returns. However, their accounts will be unfrozen two days after the registration.
The bill said restrictions will come into effect after the approval of the federal government.
A month ago, Pakistan’s Finance Minister, Muhammad Aurangzeb, introduced restrictions on property and vehicle purchases for non-filers, stressing that tough economic decisions are essential for long-term improvement.
In a press conference in Washington, Aurangzeb highlighted the need for legal measures to address the issue of non-filers and announced that Pakistan is working towards eliminating the non-filer category.
He highlighted ongoing efforts to raise Pakistan’s tax-to-GDP ratio from 9% to 13%, with inflation rates and the policy rate showing improvement as a result.
