Half of Pakistan’s economy is believed to operate on black money, prompting the Federal Board of Revenue (FBR) to take significant steps to address tax evasion and increase compliance. As part of these efforts, the FBR has been cleared to hire 1,600 auditors to track non-filers and enforce the Tax Laws (Amendment) Bill 2024. This was revealed during a meeting of the National Assembly’s Standing Committee on Finance and Revenue held today.
Minister of State for Finance Ali Pervaiz Malik briefed the committee on the new bill, which aims to tackle the long-standing issue of undocumented wealth and improve tax compliance. He noted that the government has remained silent on non-filers for 75 years but is now taking decisive action. Under the proposed tax laws, non-filers will face strict restrictions, including being barred from conducting major transactions such as purchasing property, vehicles, or investing in businesses and equity markets.
FBR Chairman Rashid Mahmood Langrial explained that the amendments are specifically designed to target high-income individuals and businesses involved in tax evasion. The new laws will grant FBR officers additional powers, such as blocking transactions linked to black money and tax evasion. The recruitment of 1,600 auditors is expected to strengthen the FBR’s ability to enforce these measures and improve revenue collection.
Despite the government’s intentions, several members of the committee raised concerns about the potential economic disruption the bill could cause. Lawmakers cautioned against rushing the implementation of such significant changes, warning that it could lead to unintended consequences.
They also highlighted the challenges posed by Pakistan’s largely informal economy, with nearly half of it operating outside the formal tax net. Some members argued that the bill might inadvertently harm ordinary citizens, particularly by restricting their ability to purchase vehicles and property.
To address these concerns, the committee formed a five-member sub-committee tasked with engaging stakeholders, including the FBR and the Association of Builders and Developers (ABAD). The sub-committee will review the Tax Laws (Amendment) Bill 2024 and submit its findings within 10 days, providing further insights into how the proposed changes may impact the property market and other sectors.
