Senate’s Finance Committee Approves Tax Laws Amendment Bill 2024
Islamabad:The **Senate’s Standing Committee on Finance** has approved the **Tax Laws Amendment Bill 2024**, which includes significant measures to curb tax evasion and enforce stricter financial regulations. The bill was approved in a meeting chaired by **Senator Saleem Mandviwala**.
Under the provisions of the bill, individuals who are **non-filers** (those who do not file taxes) will face strict restrictions on their purchasing abilities. Specifically, non-filers will not be allowed to buy vehicles larger than **800 cc**, **property**, or **bungalows**. In addition, they will face prohibitions on opening **bank accounts** and purchasing **shares**.
**Chairman of the Federal Board of Revenue (FBR)**, **Rashid Mehmood Langrial**, asserted that the proposed amendments would affect only a small portion of the population, stating that **95%** of the people would not be impacted by these changes.
### Key Provisions of the Bill:
1. **Restrictions on Non-Filers**:
– Non-filers will not be allowed to purchase **high-end vehicles**, **real estate**, or **bungalows**.
– They will also face restrictions on **opening bank accounts** and **purchasing shares**.
– Additionally, non-filers will need to prove their financial capability before making purchases. This will include declaring the **sources of income** in their tax returns before buying assets like vehicles or property.
2. **Bank Account Restrictions**:
– Non-filers will not be allowed to open **current** or **savings accounts** with banks.
– A restriction will be placed on the amount of money non-filers can withdraw from any bank accounts.
– **High-risk individuals’ data** will be shared with banks, and actions will be taken against them if they attempt to circumvent these regulations.
3. **Property and Vehicle Purchases**:
– A new clause was added, barring non-filers from **buying property** unless they are registered with the **tax authorities**.
– Similarly, they will be required to demonstrate their financial standing before purchasing vehicles, and any purchases will be subject to scrutiny.
4. **Sales Tax and Registration**:
– Individuals who fail to register for **sales tax** will face **freezing of their bank accounts**.
– Such individuals will also be prohibited from transferring property. However, their accounts will be unfrozen once they register for sales tax, and an appeal can be made to the **Chief Commissioner** for account de-freezing.
5. **FBR’s Clarification**:
– **Rashid Mehmood Langrial** clarified that **90-95%** of the population will not be affected by the bill as most individuals already comply with tax regulations.
6. **Proposal for Currency Note Ban**:
– During the meeting, **Senator Mohsin Aziz** suggested imposing a **ban on the 5000-rupee currency note**, a proposal which will be reviewed in subsequent discussions.
### The Purpose of the Tax Laws Amendment Bill 2024:
The primary objective of the **Tax Laws Amendment Bill 2024** is to ensure that the tax system is more **transparent** and that individuals pay taxes based on their **income**. This, in turn, is intended to generate resources for the country’s **economic development**.
### Stricter Measures Against Tax Evasion:
– The bill includes **tough measures** for tax evaders, including **freezing bank accounts** of sales tax defaulters and **prohibiting property transfers** until proper tax documentation is provided.
– **Non-filers** will also face restrictions on their financial activities, which include prohibitions on withdrawing large sums of money from their bank accounts.
The bill aims to enhance **compliance** and **accountability** among tax payers, ensuring a more effective and fair tax collection system in Pakistan.
The **Standing Committee on Finance** will continue to review and refine the provisions of the bill in the coming days before it proceeds to the full Senate for further approval.
