Govt considers blocking bank accounts of non-filers

The government may implement measures to block the bank accounts of non-filers and plans to introduce a fixed sales tax on mobile phone imports, replacing the current 18% tax. 

According to a news report, these changes are proposed under the amended Finance Bill 2024.

Originally part of the Finance Bill 2024 but not passed, the proposal to freeze the bank accounts of non-filers is being reconsidered. 

Under this proposal, if non-filers fail to respond to notices, their bank accounts may be blocked until they appear on the Active Taxpayers List (ATL). 

Non-filers would still be able to deposit money but would be unable to withdraw funds until they become compliant taxpayers.

If this proposal is included in the amended Finance Bill 2024, the Federal Board of Revenue (FBR) will issue an income tax general order listing the non-filers whose bank accounts will be blocked.

Another important change in the amended Finance Bill 2024 involves replacing the 18% sales tax on mobile phone imports with a fixed sales tax amount, varying by brand.

Additionally, the government is revising the disallowance of 25% of sales promotion and advertising expenses introduced in the original Finance Bill 2024. 

Three options are under consideration: reducing the disallowance rate from 25 to 20% with certain conditions, restoring the law to its pre-Finance Bill 2024 status and granting the FBR rule-making powers, or allowing a fixed percentage of sales promotion or advertising expenses.