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ISLAMABAD: In a bid to expand the tax net, the Pakistani government plans to freeze bank accounts of individuals who do not file tax returns.
Although the original Finance Bill 2024 included this proposal, it was not passed. However, the government has revived the plan and intends to incorporate it into the amended version of the bill, according to a report by Business Recorder on Wednesday.
If non-filers fail to respond to notices, the government may block their bank accounts until they are listed on the Active Taxpayers List (ATL). Non-filers would still be able to deposit money into their accounts but would be unable to withdraw funds until they comply and are listed on the ATL.
Earlier on May 11, the Federal Board of Revenue (FBR) began the process of blocking 506,671 mobile phone SIMs belonging to non-filers of tax returns. This action followed the federal government’s approval of the policy in April.
Telecom operators started sending warning messages to the first batch of 5,000 non-filers, a precursor to the imminent blocking of their mobile SIMs if they fail to file their tax returns.