The Federal Board of Revenue (FBR) has introduced stringent measures targeting non-filers by blocking their current savings accounts. This significant step was approved by the Senate Standing Committee on Finance and Revenue during the discussion of the Tax Laws Amendment Bill 2024.
Blocking Bank Accounts of Non-Filers
According to reliable sources, banking institutions will no longer open or maintain current or savings accounts for individuals who fail to file their tax returns. Additionally, FBR will restrict cash withdrawals exceeding a certain limit for these individuals.
New Monitoring Mechanism
To ensure compliance, FBR and banks will work together to create a system that monitors banking transactions based on an individual’s declared income associated with their CNICs. The new mechanism will flag individuals whose banking activity doesn’t match their reported earnings.
Major Purchases Under Scrutiny
The committee has also introduced stricter rules for high-value purchases:
- Transactions exceeding 130% of declared income will require taxpayers to declare additional income or resources in their tax returns.
- Filers must now provide details about their income sources before buying significant assets like vehicles, real estate, or securities.
Pre-Audit Mechanisms for High-Value Sales
The government has approved pre-audit mechanisms for high-value sales, including items like gold and foreign currency, to prevent tax evasion.
Cigarettes and Beverages Require Tax Stamps
In a bid to combat illicit trade, the committee has mandated that cigarettes and beverages must carry tax stamps, stickers, or barcodes to ensure they are taxed appropriately.
What This Means for Taxpayers
These measures aim to increase tax compliance and reduce evasion. Non-filers will face strict restrictions, while filers will need to align their purchases with their declared income.
By targeting undeclared wealth and ensuring proper taxation on high-value transactions, the FBR is pushing for a fairer and more transparent taxation system.
