The federal government has introduced the Tax Laws Amendment Bill 2024-25 in the National Assembly, implementing stringent measures against non-filers. This comprehensive legislation aims to reshape Pakistan’s tax landscape with several key provisions.
New Restrictions
Vehicle Purchases
Non-filers will face restrictions on purchasing vehicles above 800cc, though they will still be allowed to buy motorcycles, rickshaws, and tractors.
Property and Investment Limitations
The legislation imposes strict limits on property transactions and stock market investments for non-filers. Property transfers will be restricted, and the government will have the authority to seal properties of unregistered individuals.
Banking Restrictions
- Non-filers will be prohibited from opening new bank accounts.
- Banking transactions above certain limits will be restricted.
- Bank accounts of unregistered business persons will be frozen.
Family Tax Status
A new family-based tax system will be introduced where:
- A wife
- Children under 25 years
- Unmarried daughters
will benefit from the filing status of the household head.
Enforcement Measures
The government plans to completely abolish the category of non-filers from tax laws. Finance Minister Muhammad Aurangzeb emphasized that Pakistan is unique in having a “non-filer” category, stating that individuals should either be filers or considered non-tax payers.
Implementation Timeline
The Federal Board of Revenue (FBR) has confirmed these measures will be implemented gradually, with the primary goal of expanding the tax base and ensuring greater documentation of the economy.
The new system aims to reduce the burden on existing taxpayers while bringing more citizens into the tax net, particularly targeting retailers, wholesalers, agriculture sector, and property sector.
