In a major move to tighten tax laws, the Federal Board of Revenue (FBR) has introduced more than 15 restrictions aimed at non-filers, making it increasingly difficult for them to operate without complying with tax regulations.
Here’s a breakdown of the new measures:
- Non-Religious Travel Ban: Non-filers will be prohibited from traveling abroad for non-religious purposes.
- Cash Withdrawal Limit: An annual limit of Rs30 million has been imposed on cash withdrawals, aimed at discouraging unaccounted-for transactions.
- Asset Purchase Ban: Non-filers will no longer be allowed to purchase properties or vehicles.
- Investment Restrictions: Non-filers will be barred from investing in the stock market and mutual funds.
- Current Account Limitations: Opening current bank accounts will be restricted for non-filers.
- Higher Withholding Taxes: Non-filers will face higher tax rates on various financial transactions.
- Income Proof for Property Purchases: Higher-income filers must justify their income when purchasing property.
- Explanations for Other Purchases: Lower-income filers will need to explain their sources of income for significant purchases.
- Data Sharing with Banks: Information on non-filers will be shared with banks to enforce cheque withdrawal limits.
- Property Purchases Below Market Value: The government will seize properties reported below market value.
- Cheque Use Restrictions: Non-filers will face limitations on using cheques for specific transactions.
- Transaction Bans: Gradual bans will be applied to 15 types of transactions for non-filers.
- No Tax Exemptions: Non-filers will not be eligible for tax deductions or exemptions.
- Business Opportunity Limits: Restrictions will be placed on non-filers conducting business activities.
- Increased Scrutiny: Non-filers will face enhanced audits and scrutiny.
These measures signal the government’s growing efforts to ensure tax compliance and curb tax evasion.
