Pakistan Imposes Strict Tax Laws on Non-Filers, Restrictions on Bank Accounts and Property Purchases

In a bid to increase the number of taxpayers amidst challenging economic conditions, the Pakistani government has introduced new tax restrictions on non-filers. During a briefing at the National Assembly’s Standing Committee on Finance, Chairman of the Federal Board of Revenue (FBR), Rashid Mehmood Langrial, outlined the details of the new measures.

Under the new tax law, non-filers will no longer be allowed to open current or savings bank accounts. However, no restrictions have been placed on individuals purchasing properties of 5 to 10 marla. The new law allows tax return filers to include their spouses, unmarried daughters, and children under the age of 25 in their tax returns.

Member of the Sales Tax Committee, Dr. Hamid Atiq Sarwar, clarified that FBR has not imposed any restrictions on property purchases. The matter will be decided by the federal cabinet, and a sub-committee has been formed to review the issue and present recommendations within 10 days.

Economic affairs expert Shahbaz Rana revealed that the new proposals would also prevent unregistered businesses from opening bank accounts or transferring properties. Non-filers will be prohibited from purchasing houses, vehicles, or shares valued above a specific threshold.

Furthermore, the new law proposes a penalty for sales tax fraud, including up to 10 years in prison and fines of up to one crore rupees. The Standing Committee is currently reviewing these proposals, and further recommendations may be made by the government.