Govt Introduces Bill to Strengthen Tax Compliance and Enforcement
ISLAMABAD: The government introduced the Tax Laws (Amendment) Act 2024 in the National Assembly on Wednesday, aiming to give tax authorities enhanced powers to ensure compliance with tax laws. The bill, presented by Finance Minister Muhammad Aurangzeb, proposes significant changes to existing tax laws, including replacing the terms ‘filers’ and ‘non-filers’ with ‘eligible’ and ‘ineligible persons.’
The proposed law seeks to impose strict restrictions on non-compliant individuals, including barring them from opening or maintaining bank accounts, purchasing or selling property, and buying vehicles with engine capacities over 800cc. The bill also grants tax authorities the power to seal unregistered business premises and impose penalties on businesses failing to comply with tax regulations.
Furthermore, the bill outlines measures to monitor financial transactions, including requiring banks to report high-risk individuals and installing point-of-sale (POS) devices in Islamabad to collect sales tax on services. Non-compliant individuals will also face restrictions on purchasing certain goods and services, with some exemptions for small vehicles, loans, and inheritance transactions.
The bill also seeks to streamline the registration process for businesses and includes provisions for audits, investigations, and penalties for tax violations. While it aims to curb tax evasion and improve tax collection, concerns have been raised regarding the broad powers granted to tax authorities and their potential impact on small businesses and individuals.
