Islamabad: Pakistan government introduced a bill in Parliament on Wednesday, banning people who do not file tax returns from opening bank accounts and purchasing cars over 800cc. Finance Minister Muhammad Aurangzeb presented the Tax Laws (Amendment) Bill, 2024, as part of measures to tackle tax evasion.
The amendment proposes restrictions on non-filers, including bans on purchasing shares, opening bank accounts beyond a certain limit, and conducting large bank transactions.
Restrictions by FBR
According to the bill, the Federal Board of Revenue (FBR) will have the authority to freeze bank accounts of unregistered businessmen and prohibit them from transferring property. These restrictions aim to compel people to register and file sales tax returns with the FBR. Bank accounts will be unfrozen two days after registration.
The proposed restrictions will come into effect after approval by the federal government. This move comes as Pakistan struggles to boost revenue collection to meet the requirements of a $7 billion loan package from the International Monetary Fund (IMF) agreed upon in September this year.
Pakistan’s revenue collection
Pakistan has set a revenue collection target of Rs 12.913 trillion for the 2024–25 financial year, a 40% increase from the previous year’s tax collection.
However, in the first quarter of the financial year (July-September), the FBR missed its target by Rs 96 billion, collecting Rs 2,556 billion against a target of Rs 2,652 billion.
