Non-filers will no longer be able to purchase vehicles exceeding 800cc

ISLAMABAD: The government has presented the “Tax Law Amendment Bill 2024-25” in the National Assembly aimed at further tightening the noose around tax non-filers.

The proposed bill aims to curb tax evasion and expand the tax net by introducing stringent rules for non-compliant individuals and businesses.

Under the proposed amendment, non-filers will be prohibited from purchasing vehicles exceeding 800cc and properties above a specified value.

The non-filers will also face restrictions on acquiring shares beyond certain limits and opening new bank accounts.

Similarly, high-value banking transactions will also be capped for non-filers, although they will still be allowed to purchase motorcycles, rickshaws, and tractors.

The bill also targets unregistered businesses by authorising the freezing of their bank accounts and barring them from property transactions.

Under the proposed bill, the government will have the authority to seize properties associated with unregistered individuals or businesses.

The Federal Board of Revenue (FBR) is expected to release a list of individuals whose accounts will be frozen once the federal government issues a notification.

Non-compliance with sales tax registration will result in the freezing of bank accounts and restrictions on property transfers.

These accounts will be unfrozen within two days of registration, subject to an appeal with the respective chief commissioners.

The bill also includes provisions recognising dependents of tax filers, such as children under 25 years of age, spouses, and parents, as compliant individuals.

In September, Finance Minister Muhammad Aurangzeb said that now there was no room for non-filers, warning that imposing strict restrictions on them will delimit their accounts facilities further.

Speaking to an American TV channel, Aurangzeb had said that “Our collected data about these non-filers showed all their assets and overall creamy lifestyle and trip to developed countries, leading us to know about their source of income.”

The enactment of the new policy will bring sectors like property dealers, retailers, wholesalers and agriculture into the tax net, the minister said.

During the interview, he said that “We shared the same plan with the International Monitory Fund (IMF) as have no option anymore.”

Sources said that the FBR has completed all necessary preparations and is now ready to implement an enforcement plan. The first phase of the initiative will target 5,000 non-filers and it is expected to bring in around Rs7 billion in unpaid taxes.

The FBR has already conducted an extensive analysis of transaction data for about 200,000 non-filers.