Federal Govt Plans Tough Penalties for Non-Compliant Bank Officers and Traders

These legislative changes signify the government’s robust efforts to bolster tax compliance and streamline customs enforcement across the country.

ISLAMABAD: The federal government has announced stringent measures to enforce tax compliance, targeting bank officers and traders who fail to provide information to the Federal Board of Revenue (FBR).

Under proposed amendments in the Income Tax Ordinance through the Finance Bill, bank officers could face fines and imprisonment up to one year for neglecting to furnish taxpayer information to the FBR. Similarly, traders avoiding registration under Section 99B for income tax may incur penalties of fines and imprisonment for up to six months.

Furthermore, amendments aim to utilize data from the National Database Registration Authority (NADRA) to broaden the tax net, enhancing transparency and accountability in tax collection.

Additionally, the Finance Bill proposes amendments to the Customs Act, empowering the Customs Department to collaborate with police and the Intelligence Bureau to apprehend individuals involved in customs-related offenses.

These legislative changes signify the government’s robust efforts to bolster tax compliance and streamline customs enforcement across the country.

Senate Committee Proposes Ban on Non-Filers Purchasing Cars and Houses

ISLAMABAD: Members of the Senate Standing Committee on Finance have advocated for a ban on non-filers buying cars and houses, aiming to curb tax evasion and bolster revenue collection.

Chaired by Senator Saleem Mandviwala, the committee meeting saw the participation of Finance Minister Muhammad Aurangzeb, who emphasized taxing high-income earners more while restricting non-filers to Umrah and Hajj pilgrimages only.

Committee members highlighted that 80% of industry buyers are non-filers, urging for the export sector’s inclusion in the normal tax regime to alleviate their challenges.

Addressing concerns, Finance Minister Aurangzeb affirmed the government’s commitment to enhancing the tax base, emphasizing the imperative of digitizing tax processes and imposing higher taxes on affluent individuals.

Senator Mohsin Aziz proposed banning non-filers from purchasing cars and houses, echoing concerns about their prevalence in industry transactions.

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In further discussions, Senator Faisal Vawda pledged full support for economic restoration initiatives, advocating for filer conditions for Umrah and Hajj and maintaining tax exemptions on electric cars.

Meanwhile, Center Anusha Rehman advocated for reducing taxes on mobile phones, highlighting that mobile usage should not be overly burdened with taxes.

Responding to queries, Finance Minister Aurangzeb outlined plans to bring retailers into the tax net, targeting 31,000 retailers across six cities starting in July. He also addressed concerns regarding tax revenue, tax rates for different income brackets, and FBR’s tax leakage issues.

Despite assurances, FPCCI Representative Karim Aziz expressed dissatisfaction with the budget, criticizing its lack of provisions for industry and exports, and warning of potential increases in underinvoicing.

As debates continue, the government remains focused on implementing measures to streamline tax collection and stimulate economic growth.