The Federal Government of Pakistan has resolved to impose stringent penalties on traders not registered with the Federal Board of Revenue (FBR) and bank officers who fail to furnish necessary tax-related information.
The FBR has proposed amendments to the Income Tax Ordinance included in the Finance Bill for fiscal year 2024-25.
The proposed legal adjustments specifically target bank officers who do not comply with directives to provide taxpayer information, subjecting them to penalties that may include a year in prison, financial fines, or both. Additionally, traders required by Section 99b of the Income Tax Act to register but who have not done so will simultaneously face up to six months in prison, monetary fines, or both penalties.
The proposed amendments aim to fortify tax compliance and enhance the effectiveness of revenue collection mechanisms within the country. Further proposed measures include utilizing NADRA’s database to expand the tax net and amendments to the Customs Act to involve the Intelligence Bureau alongside police for customs-related arrests.
This initiative underscores the government’s determination to tighten tax enforcement and broaden fiscal accountability, reflecting an overarching strategy to enhance financial governance in Pakistan.
