The National Assembly Standing Committee on Finance is set to discuss the Tax Laws (Amendment) Bill, 2024, on Tuesday. The proposed legislation introduces significant restrictions on non-filers, aiming to enhance tax compliance and broaden the tax net.
Under the bill, non-filers will be prohibited from purchasing, booking, or registering vehicles over 800cc, acquiring property, and buying stocks. However, the withdrawal of higher withholding tax (WHT) rates for non-filers will be implemented gradually, starting with the 2025-26 fiscal year budget.
The bill also proposes additional restrictions on non-filers, including limitations on opening bank accounts and conducting multiple transactions. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors. Financial institutions will be required to freeze accounts and block property transfers of unregistered individuals. Accounts may be unfrozen within two days of registration for sales tax purposes.
The Federal Board of Revenue (FBR) will be granted extensive powers under the proposed legislation. These include the authority to publish a list of non-registered individuals, seize their properties, and enforce compliance measures such as sealing business premises and appointing receivers to manage operations.
Additionally, the bill introduces a provision that automatically qualifies parents, spouses, and children under 25 years of registered filers as filers.
