The Tax Laws Amendment Bill 2024 has been presented in the National Assembly, aiming to enforce stricter tax compliance and broaden the tax base. The Standing Committee of the National Assembly will now review the bill clause by clause before final decisions are made.
The committee has already approved stringent amendments related to sales tax. According to the draft, the primary goal of the proposed law is to ensure income-based tax payments and clamp down on tax evasion.
One of the key provisions under Section 14A of the Sales Tax Act suggests freezing bank accounts of individuals who fail to register for sales tax. The bill also proposes barring property transfers for non-filers. However, accounts can be unfrozen within two days after completing sales tax registration, as per Section 14A (E).
To restore access to frozen accounts, individuals will need to file an appeal with the Chief Commissioner, the draft outlines.
Federal Board of Revenue (FBR) Chairman Rashid Langrial, while briefing the Standing Committee earlier on Finance, acknowledged corruption within the department. “Corrupt practices are still going in FBR,” Langrial admitted, emphasizing that the amendments aim to tackle tax evasion and black money effectively.
Langrial added that the proposed changes target higher-income individuals and those involved in large-scale business transactions. The bill also grants additional powers to FBR officers to combat tax evasion more effectively.