- New rules, if implemented, will restrict individuals whose assets and income statements do not support large purchases like land, cars, or securities investments
The government’s initiative to ban economic transactions by ineligible individuals from the beginning of the new fiscal year has encountered a setback. The National Assembly Standing Committee on Finance found that the online portal intended to determine eligibility for such transactions is far from completion, according to a news report.
Chairman of the committee, Syed Naveed Qamar, expressed his concerns following a review of the government’s plan to tackle tax evasion. He criticised the Federal Board of Revenue (FBR) for failing to develop a credible system to identify ineligible persons for economic transactions, which include purchasing assets, maintaining bank accounts, or making investments.
The committee had linked its approval of the proposed ban to the FBR’s ability to create an efficient, exploitation-free online system.
The FBR had initially promised to have the system ready by April, but during a briefing at the FBR headquarters, it became clear that the system was still in its prototype phase, unable to meet the intended goals, said Usama Mela, a member of the committee.
Despite the setback, there remains a possibility that the National Assembly will approve the proposed amendments. However, their implementation will be contingent upon the completion of the online platform.
The new rules would restrict individuals whose assets and income statements do not support large purchases like land, cars, or securities investments.
FBR Chairman Rashid Langrial acknowledged that the new system would not be ready by July 1, 2025, and that the current system would remain in place until further developments are made. He also agreed with the committee’s suggestion to initially roll out the new system for a limited group of taxpayers, instead of a full implementation.
The government’s proposals include restrictions on cash withdrawals from bank accounts for ineligible individuals, although exceptions will allow for the purchase of smaller vehicles and investments within certain limits. The new system is designed to ensure that individuals can only make large purchases if their declared income and assets support them.
If the system is implemented successfully, it would help in the collection of due taxes from both filers and non-filers, based on their declared wealth.
