Govt to Amend Finance Bill: Freeze Bank Accounts of Non-Filers

The Pakistani government is likely to introduce amendments to the Finance Bill 2024 that will enable the blocking of bank accounts belonging to non-filers of tax returns.

According to Business Recorder, the proposal to freeze non-filers’ bank accounts was part of the original Finance Bill 2024 but was not passed initially. The government has now revived this plan and intends to include it in the amended version of the bill.

Under the new provisions, the Federal Board of Revenue (FBR) will issue an income tax general order (ITGO) listing the names of non-filers, whose bank accounts will then be blocked. While non-filers will still be able to deposit money, they will be prohibited from withdrawing funds until they appear on the Active Taxpayers List (ATL) by filing their tax returns.

The amended Finance Bill 2024 will also change the sales tax regime for imported mobile phones. Instead of the current 18% sales tax, a fixed amount of sales tax will be implemented based on the brand and model of the imported phone.

These measures are part of the government’s ongoing efforts to broaden the tax net and encourage greater tax compliance among citizens. By targeting non-filers and revising the mobile phone sales tax structure, the authorities aim to generate additional revenue and promote a more equitable taxation system in the country.

The amended Finance Bill 2024 is currently under consideration and is expected to be presented in the near future for parliamentary approval.