The government is set to introduce tougher measures against non-filers as part of its efforts to enhance tax compliance. Under the proposed Revenue Amendment Bill 2024, non-filers will face significant restrictions, including bans on purchasing vehicles over 800cc, opening bank accounts, and buying or transferring property. The bill also grants authorities the power to seal the properties and businesses of individuals who fail to register for tax purposes.

Finance Minister Muhammad Aurangzeb presented the bill in the National Assembly, outlining a series of measures aimed at curbing tax evasion. Key provisions of the bill include:

• Non-filers will be prohibited from purchasing vehicles exceeding 800cc.
• Property purchases beyond a specified limit will be restricted for non-filers.
• Non-filers will not be allowed to buy shares beyond a certain threshold.
• Opening bank accounts or conducting banking transactions beyond a specific limit will also be off-limits for non-filers.

Despite these restrictions, non-filers will still be permitted to purchase motorcycles, rickshaws, and tractors.

Measures for Unregistered Businesses

The bill also introduces strict penalties for unregistered businesses. Bank accounts of unregistered business owners will be frozen, and they will be barred from transferring property. Additionally, the government will have the authority to seal properties and businesses of individuals who fail to register for sales tax. The Federal Board of Revenue (FBR) will issue a list of individuals whose accounts are to be frozen.

Key measures for unregistered businesses include:

• Bank accounts will be frozen for failure to register for sales tax.
• Property transfers will be prohibited for unregistered individuals.
• Accounts will be restored within two days of completing sales tax registration.
• Appeals for account restoration can be submitted to the Chief Commissioner.

Family Members of Filers to Be Considered Filers

In a move to simplify tax compliance, the bill also states that the parents, spouse, and children (up to 25 years of age) of a filer will automatically be considered filers.

The restrictions will come into effect following a notification from the federal government. These measures are part of the government’s broader strategy to increase tax revenue and ensure compliance with tax laws.