Proposal to Ban Rs. 5,000 Currency Note Discussed in Senate Finance Committee Meeting
Islamabad:A proposal to impose a ban on the Rs. 5,000 currency note was raised during a meeting of the Senate Standing Committee on Finance. The meeting, chaired by Senator Saleem Mandviwala, deliberated on the **Tax Laws Amendment Bill 2024**, with several clauses being approved.
The committee discussed various reforms, including the protection of taxpayers’ data by tax auditors and experts, imposing a ban on non-filers from purchasing vehicles, bank accounts, and shares, as well as restrictions on property transactions for non-filers. Additionally, a clause to share data of high-risk individuals with banks was also approved.
During the meeting, the Chairman of the Federal Board of Revenue (FBR), Asim Ahmad, emphasized that individuals would need to clarify their financial capacity before making purchases such as vehicles and property. Furthermore, he stated that taxpayers would also be required to disclose the source of their income in their tax returns.
Senator Mohsin Aziz, however, expressed concerns, claiming that the FBR’s approach was promoting a cash economy. He suggested that the government should consider banning the Rs. 5,000 currency note to curb the use of large cash transactions.
In response, Chairman FBR Asim Ahmad assured that the proposed amendments in the bill would not harm 90% of the population, highlighting that the measures were aimed at bringing transparency to financial transactions and encouraging tax compliance.
The proposal is part of the broader push to formalize the economy and combat money laundering, tax evasion, and black money.
