pakistan news
Pakistan is in a mood to take strict action against those who do not file ITR. The Government of Pakistan has introduced a bill in the Parliament. It is proposed to ban people who do not file tax returns from opening bank accounts and buying cars above 800cc. Pakistan Finance Minister Muhammad Aurangzeb introduced the Tax Laws (Amendment) Bill, 2024 in Parliament on Wednesday. This is being said to be one of the actions being taken by the government against tax evaders.
Bank accounts will be frozen
The amendment proposes that those who do not file ITR will be restricted from purchasing shares above a certain limit and opening bank accounts. They will not be able to transact more than a fixed limit through the bank. The bill states that the bank accounts of business persons unregistered with the Federal Board of Revenue (FBR) will be frozen and they will be banned from transferring property. FBR can freeze bank accounts and stop property transfers for not registering with the top collection body for filing sales tax returns. However, their accounts will be unfrozen after two days of registration.
Struggle to get loan from IMF
The bill states that the restrictions will come into effect after approval from the federal government. The bill comes at a time when the government is struggling to increase revenue collection in line with the agreement it signed with the International Monetary Fund (IMF) in September this year to get a USD 7 billion loan package. Pakistan has set a target of Rs 12.913 trillion for the financial year 2024-25, which is 40 percent more than the tax collected in the previous financial year.
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