ISLAMABAD: In the upcoming Finance Bill 2024, the government plans to introduce significant changes to the tax code, including higher costs for financial transactions for individuals who do not file income tax returns. This measure aims to generate an additional Rs300–Rs400 billion in revenue for the fiscal year 2024–2025.
According to Business Recorder, the bill will also enhance the authority of the Federal Board of Revenue’s Directorate General of Digital Invoicing to monitor the supply chains of major companies.
Earlier this month, the paper reported that the upcoming budget might include an increase in bank cash withdrawal taxes. This proposal was discussed during negotiations between the International Monetary Fund (IMF) and Pakistani authorities.
It is estimated that the advance tax on cash withdrawals will generate over Rs15 billion annually. The upcoming budget may also see increased taxes on income from non-essential and luxury items.
Last week, the IMF announced that significant progress had been made towards a staff-level agreement for an extended fund facility with Pakistan.
The government is likely to introduce a single turnover-based registration threshold for all businesses, eliminating previous discriminatory practices.
Moreover, the government may implement an overseas vendor registration regime, requiring foreign suppliers of goods to Pakistani consumers to register and collect federal sales tax.
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