AIRLINK 184.92 Decreased By ▼ -0.27 (-0.15%)
BOP 9.61 Decreased By ▼ -0.32 (-3.22%)
CNERGY 7.26 Decreased By ▼ -0.03 (-0.41%)
FCCL 36.43 Decreased By ▼ -0.21 (-0.57%)
FFL 14.34 Decreased By ▼ -0.19 (-1.31%)
FLYNG 24.28 Decreased By ▼ -0.64 (-2.57%)
HUBC 126.41 Decreased By ▼ -0.42 (-0.33%)
HUMNL 12.80 Decreased By ▼ -0.27 (-2.07%)
KEL 4.29 Decreased By ▼ -0.03 (-0.69%)
KOSM 5.94 Decreased By ▼ -0.12 (-1.98%)
MLCF 42.27 Decreased By ▼ -0.62 (-1.45%)
OGDC 198.51 Increased By ▲ 3.07 (1.57%)
PACE 6.08 Decreased By ▼ -0.21 (-3.34%)
PAEL 37.75 Decreased By ▼ -0.21 (-0.55%)
PIAHCLA 17.09 Increased By ▲ 0.19 (1.12%)
PIBTL 7.74 Decreased By ▼ -0.05 (-0.64%)
POWER 9.22 Decreased By ▼ -0.17 (-1.81%)
PPL 168.09 Increased By ▲ 0.20 (0.12%)
PRL 32.75 Decreased By ▼ -1.27 (-3.73%)
PTC 22.42 Decreased By ▼ -0.09 (-0.4%)
SEARL 101.88 Decreased By ▼ -2.09 (-2.01%)
SILK 1.07 Decreased By ▼ -0.12 (-10.08%)
SSGC 35.53 Decreased By ▼ -0.42 (-1.17%)
SYM 17.92 Decreased By ▼ -0.18 (-0.99%)
TELE 8.17 Increased By ▲ 0.15 (1.87%)
TPLP 11.70 Increased By ▲ 0.07 (0.6%)
TRG 66.12 Decreased By ▼ -0.04 (-0.06%)
WAVESAPP 11.79 Decreased By ▼ -0.34 (-2.8%)
WTL 1.53 Increased By ▲ 0.01 (0.66%)
YOUW 3.79 Decreased By ▼ -0.02 (-0.52%)
BR100 11,609 Increased By 39.9 (0.34%)
BR30 34,116 Increased By 81.8 (0.24%)
KSE100 110,323 Increased By 21.8 (0.02%)
KSE30 34,411 Increased By 24.5 (0.07%)
Print Print 2025-01-20

Amended tax laws to tighten noose on non-filers

  • Changes in withholding tax regime to be done in the coming budget (2025-26)
Published January 20, 2025

ISLAMABAD: National Assembly Standing Committee on Finance will take up money bill, “Tax Laws (Amendment) Bill, 2024,” on Tuesday (tomorrow) and government will soon prohibit non-filers from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold.

Highly placed government officials told Business Recorder late Sunday night that the government will not immediately abolish higher rates of withholding taxes on non-filers after passage of the “Tax Laws (Amendment) Bill, 2024”. This would be done in a phase-wise manner because there is no justification of higher WHT rates after ban on transactions of non-filers.

But this withdrawal of withholding tax rates on non-filers would not be done in a one go. It would be done gradually and systematically after enforcement of the “Tax Laws (Amendment) Bill, 2024”. Changes in withholding tax regime would be done in the coming budget (2025-26), officials confirmed.

‘Ineligible persons’: stock brokers urge Aurangzeb for consultation on Tax Law (Amendment) Act

It is not clear how the FBR will overcome revenue shortfall after withdrawal of higher rates of WHTs, as withholding taxes constitute nearly 70 percent of overall direct taxes collection, tax experts questioned.

According to “Tax Laws (Amendment) Bill, 2024”, non-filers will be prohibited from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold.

Additionally, non-filers will not be able to open bank accounts, and there will be restrictions on the number of banking transactions they can conduct. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors.

The purpose of the bill also is to impose restriction on economic transaction by certain persons such as “any person, authorised to sell securities including debt securities or units of mutual funds including a person authored to open and maintain account or clear such transactions, shall not sell, open an account or clear sale of securities, mutual funds, to an ineligible person being an individual or an association of persons.”

The proposed legislation gives powers to direct bank companies, scheduled banks and other financial institutions, through an order in writing, to bar operation of the bank account of any person who fails to get registered.

The government will have the authority to seize the property of non-registered individuals involved in businesses. The Federal Board of Revenue (FBR) will release a list of individuals, and their accounts will be frozen.

The restrictions outlined in the bill will come into effect after the federal government issues a notification. Bank accounts will be frozen, and property transfers will be blocked for individuals who do not register them for sales tax. Accounts will; however, be unfrozen within two days after sales tax registration.

The Chief Commissioner Inland Revenue have the powers to seal the business premises, seize moveable property or appoint a receiver for the management of the taxable activity of a person.

Under the proposed legislation, individuals will be able to appeal to the Chief Commissioner to unfreeze accounts. For the purposes of this bill, parents and children of filers, including children up to 25 years old and spouses, will be considered as filers.

Copyright Business Recorder, 2025

Comments

Comments are closed.

Shair Malik Jan 20, 2025 11:32am
sir due to respect i also need the free interest loan but i don't know about it i just recently know about it so let me know how can i get loan what is the procedures .
thumb_up Recommended (0)
Shair Malik Jan 20, 2025 11:41am
sir due to respects i am well educated person like i have done BS commerce from federal urdu university of karachi but currently i am jobless and i am looking for the job but you know that the current situation like there is no a big chances for the job and the number of people are jobless and looking for the jobs so i have decided to start our own business but there is no money enough to start it so now and recently i listen this news there is a program has been started which is given loan without interest so i am fully happy from this and i also wanted loan to start my own business so i request to all the responsible member please let me know the procedure that how can i qualify for this loan to get it.
thumb_up Recommended (0)
Adeel baloch Jan 20, 2025 03:10pm
Asalamoalaikum mujhe bhi study k liye laptop chaiye please meri 80% h
thumb_up Recommended (0)
Ch K A Nye Jan 20, 2025 08:30pm
@Shair Malik, there is no such thing.
thumb_up Recommended (0)
Tariq Qurashi Jan 21, 2025 02:55pm
This is giving way too much power to this department. The results will be more small and micro unregulated businesses shutting down. Let us not forget that this country survives on this grey economy.
thumb_up Recommended (0)
Tariq Qurashi Jan 21, 2025 02:55pm
This is giving way too much power to this department. The results will be more small and micro unregulated businesses shutting down. Let us not forget that this country survives on this grey economy.
thumb_up Recommended (0)