More trouble for non-filers as FBR to share income tax data with banks

The Federal Board of Revenue (FBR) will now share income tax return data with banks to cross-check it against banking information under a new provision introduced in the Tax Laws (Amendment) Bill 2024.

The bill, presented in the National Assembly on Wednesday, introduces the concepts of “eligible” and “ineligible persons.”

It imposes restrictions on economic activities for ineligible persons (non-filers), including prohibitions on purchasing motor vehicles, buying or selling immovable properties, trading securities, opening new bank accounts, operating existing accounts, and withdrawing cash from banks.

The federal government is set to implement stricter regulations on non-filers with the introduction of the Tax Law Amendment Bill 2024-25 in the National Assembly.

The key provisions of the amendment include vehicle purchase restrictions, with non-filers being barred from buying vehicles with engine capacities over 800cc. Moreover, non-filers will be prohibited from acquiring property or purchasing shares beyond a set limit. They will also be unable to open bank accounts or carry out certain banking transactions.

Key provisions of the bill include:

Bank Account Restrictions: Non-filers will not be allowed to open bank accounts or engage in excessive banking transactions.

Property Acquisition Limits: Non-filers will be restricted from purchasing properties beyond a specified limit and will be barred from acquiring excessive shares.

Vehicle Purchase Ban: Non-filers will be restricted from purchasing vehicles with engine capacities exceeding 800cc, but they can still buy motorcycles, rickshaws, and tractors.

Freezing of Accounts: The bank accounts of unregistered businesses will be frozen, and non-filers will be restricted from transferring property.

Government Authority to Sell Property: The government will have the power to seize properties of unregistered individuals, with FBR issuing lists of those affected, leading to account freezes.

Sales Tax Registration Enforcement: Non-filers who do not register for sales tax will face account freezes and property transfer restrictions. Accounts will be unfrozen two days after completing sales tax registration, but individuals must appeal to the Chief Commissioner to open their accounts.