ByThe recent approval of the Tax Laws (Amendment) Bill 2024 has ushered in a new era of strict measures against non-filers in Pakistan. The bill significantly restricts the financial and commercial activities of individuals who have not filed their income tax returns.
Key Restrictions for Non-Filers:
Purchase Restrictions: Non-filers will face severe limitations on their ability to purchase property, vehicles, and other significant assets.
Stricter checks will be implemented at the point of sale, with authorities verifying the tax compliance of the buyer before allowing the transaction to proceed.
Non-filers may be entirely prohibited from purchasing certain assets.
Investment Limitations: Non-filers will face restrictions on their ability to invest in various avenues, including shares, mutual funds, and other financial instruments.
Bank Account Restrictions: Non-filers may be limited to basic bank accounts with restricted transaction limits, potentially hindering their financial activities.
Focus on Eligibility:
The bill introduces the concept of “eligible persons,” which refers to individuals who have filed their income tax returns for the preceding year. Only eligible persons will be permitted to engage in major financial transactions.
Rationale Behind the Measures:
The government aims to increase tax compliance and broaden the tax base by imposing these restrictions on non-filers. This move is expected to encourage individuals to file their tax returns and contribute their fair share to the national exchequer.
Next Steps:
The implementation of these measures will require detailed guidelines and Standard Operating Procedures (SOPs) from the FBR. It is crucial to ensure that these measures are implemented fairly and effectively, while also minimizing any unintended consequences for businesses and individuals.
