The Federal Board of Revenue (FBR) is set to empower Inland Revenue officials with the authority to seal business premises, restrict financial activities, and prohibit the opening of new bank accounts for unregistered individuals under a proposed tax bill.Â
On Wednesday, the government introduced the Tax Law Amendment Bill 2024-25 in the National Assembly. The proposed legislation intensifies restrictions on non-filers, aiming to curb tax evasion and enhance revenue collection.
The bill introduces a framework linking financial transactions to declared cash and assets in income tax returns. Taxpayers will still be allowed to acquire vehicles, properties, or make financial transactions in the names of family members whose resources align with their declared assets.
The bill proposes strict restrictions on the economic activities of “ineligible persons,” including the following measures:
- Vehicle Purchase/Registration: Applications for booking, purchase, or registration of motor vehicles will not be accepted or processed by manufacturers or excise departments for ineligible persons.
- Property Transactions: Transfer of immovable property exceeding a value specified by the FBR will not be recorded, registered, or attested.
- Securities and Mutual Funds: Authorized dealers will be restricted from selling securities or mutual fund units to ineligible persons.
- Bank Accounts and Withdrawals: Banks will not permit new account openings or allow withdrawals exceeding notified limits from current or savings accounts unless classified as “Asaan accounts.”
The FBR will issue notifications determining restrictions and financial transaction limits. Exceptions include purchases of rickshaws, tractors, or vehicles with engine capacities up to 800cc, as well as transactions backed by loans, inheritance, or remittances.
Non-residents and public companies are excluded from these restrictions. The FBR will not pursue concealment cases for individuals disclosing their cash or assets related to inheritance or remittances.
