Key Provisions of the Proposed Legislation
The National Assembly Standing Committee on Finance is set to deliberate on the Tax Laws (Amendment) Bill, 2024, on Tuesday. This legislation introduces significant measures aimed at increasing tax compliance and restricting privileges for non-filers.
Restrictions for Non-Filers
Under the proposed amendments:
- Non-filers will be barred from purchasing, booking, or registering vehicles over 800cc.
- They will not be allowed to acquire property or purchase stocks.
- Higher withholding tax (WHT) rates for non-filers will be withdrawn gradually, starting from the fiscal year 2025-26 budget.
- Non-filers will face limitations in opening bank accounts and conducting multiple transactions.]
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Exemptions and Allowances
- Non-filers will retain the ability to purchase motorcycles, rickshaws, and tractors.
- Accounts frozen due to non-registration can be unfrozen within two days after sales tax registration.
Enhanced Enforcement Powers
The Federal Board of Revenue (FBR) will be granted extensive authority, including:
- Publishing lists of non-registered individuals.
- Freezing accounts and blocking property transfers of non-compliant taxpayers.
- Seizing properties, sealing business premises, and appointing receivers for business management to enforce compliance.
Family Members of Filers Automatically Qualify
The bill stipulates that parents, spouses, and children under 25 years of registered filers will automatically gain filer status.
Implementation Timeline
The provisions of the bill will be enacted following a notification from the federal government.
