ISLAMABAD: The government, Wednesday, introduced a money bill, “Tax Laws (Amendment) Bill, 2024,” in the National Assembly to further tighten the grip on non-filers and to generate financial resources for economic development.
Finance Minister Muhammad Aurangzeb introduced, “The Tax Laws (Amendment) Bill, 2024” in the House. The Speaker referred the bill to the Standing Committee on Finance and Revenue for further deliberation.
According to “Tax Laws (Amendment) Bill, 2024”, non-filers will be prohibited from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold.
Govt to abolish category of non-filers, finance minister affirms
Additionally, non-filers will not be able to open bank accounts, and there will be restrictions on the number of banking transactions they can conduct. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors.
The purpose of the bill also imposed restriction on economic transaction by certain persons such as “any person, authorized to sell securities including debt securities or units of mutual funds including a person authored to open and maintain account or clear such transactions, shall not sell, open an account or clear sale of securities, mutual funds, to an ineligible person being an individual or an association of persons.”
The proposed legislation gives powers to direct bank companies, scheduled banks and other financial institutions, through an order in writing, to bar operation of the bank account of any person who fails to get registered.
Upon registration of such person, the Commissioner shall issue and convey order for removal of bar on operation of his bank accounts not later than two working days.
Non-registered business owners’ bank accounts will be frozen, and in the case of approval of the proposed amendments, non-registered individuals will not be able to transfer property.
According to the bill, “The Commissioner shall have the powers to direct the powers to direct the property registering authority, through an order in writing, to bar transfer of immovable property of any person who fails to get registered for the purpose of this Act.”
The government will have the authority to seize the property of non-registered individuals involved in businesses. The Federal Board of Revenue (FBR) will release a list of individuals, and their accounts will be frozen.
The restrictions outlined in the bill will come into effect after the federal government issues a notification. Bank accounts will be frozen, and property transfers will be blocked for individuals who do not register for sales tax. Accounts will be unfrozen within two days after sales tax registration.
The Chief Commissioner Inland Revenue have the powers to seal the business premises, seize moveable property or appoint a receiver for the management of the taxable activity of a person.
Under the proposed legislation, individuals will be able to appeal to the Chief Commissioner to unfreeze accounts. For the purposes of this bill, parents and children of filers, including children up to 25 years old and spouses, will be considered as filers.
A month ago, Finance Minister Muhammad Aurangzeb had stated that there is a need for legal coverage regarding non-filers, and Pakistan is moving to eliminate the non-filer category altogether. He highlighted ongoing efforts to raise Pakistan’s tax-to-GDP ratio from 9 per cent to 13 per cent, with inflation rates and the policy rate showing improvement as a result.
Meanwhile, the National Assembly passed, “The National Forensics Agency Bill, 2024.”
The bill, moved by Interior Minister Mohsin Naqvi, is aimed at enhancing forensic capabilities across Pakistan. The key initiatives include upgrading existing conventional forensic labs and establishing digital forensic lab that will provide services to all provinces, including Gilgit-Baltistan and Azad Kashmir as well as government and private forensics labs.
The National Forensics Agency will integrate digital and cyber forensics to combat crimes involving electronic devices, deep fakes, and other electronic offences.
Moreover, it will develop a center of excellence and research and development department to make it a self-sustainable agency. It will also envisage developing indigenous solutions to minimise the dependence on foreign governments and agencies.
Copyright Business Recorder, 2024