Finance Minister Introduces Bill to Restrict Non-Filers from Major Financial Transactions
The introduction of this bill follows the Prime Minister's approval of stringent measures aimed at enforcing tax compliance among non-filers.
The federal government on Wednesday introduced a new amendment bill aimed at tightening regulations for non-filers, presented by Finance Minister Muhammad Aurangzeb in the National Assembly.
This legislation seeks to bar non-filers from purchasing vehicles with engine capacities exceeding 800cc, opening bank accounts, and acquiring property beyond a specified limit.
The introduction of this bill follows the Prime Minister’s approval of stringent measures aimed at enforcing tax compliance among non-filers. The Federal Board of Revenue (FBR) has reported that a significant portion of the economy operates outside the tax net, with only 14% of manufacturers registered for sales tax and even fewer retailers complying with income tax regulations.
The finance minister emphasized the need for a documented economy to reduce reliance on cash transactions, which currently account for approximately 25% of the economy.
Aurangzeb stated that these measures are essential for improving Pakistan’s tax-to-GDP ratio and addressing widespread tax evasion, which he estimates at around Rs1.3 trillion annually.
Key Provisions of the Bill
- Vehicle Purchase Restrictions: Non-filers will be prohibited from purchasing vehicles with engine capacities exceeding 800cc. However, they will still be allowed to buy motorcycles, rickshaws, and tractors.
- Bank Account Limitations: The bill will bar non-filers from opening new bank accounts and conducting significant banking transactions. Existing accounts may also face restrictions, particularly for those who do not comply with tax regulations.
- Property Acquisition Limits: Non-filers will not be permitted to purchase properties beyond a certain threshold and will face restrictions on acquiring shares and other financial instruments.
- Freezing of Accounts: The government plans to freeze the bank accounts of businesses that remain unregistered for tax purposes, which could affect their ability to operate effectively
