The National Assembly introduced the Tax Laws Amendment Bill 2024, which is now under review by the Standing Committee. This committee will examine the bill, clause by clause, and make necessary decisions. They have already endorsed the most stringent amendments concerning Sales Tax.
The draft outlines the bill’s primary goal of enforcing income-based tax compliance. The bill introduces harsh penalties for non-filers, including potentially freezing their bank accounts. Section 14A of the Sales Tax Act allows the immediate freezing of bank accounts for individuals who do not register for sales tax. Additionally, these individuals will face restrictions on property transfers.
However, the bill provides a remediation path: accounts can be unfrozen within two days following the completion of sales tax registration. To initiate the unfreezing process, affected individuals must appeal to the Chief Commissioner.
Earlier discussions highlighted ongoing Federal Board of Revenue (FBR) issues. Rashid Langrial, FBR Chairman, acknowledged the persistence of corruption during a briefing to the National Assembly’s Standing Committee on Finance. He emphasized that the proposed changes aim to broaden the tax base by targeting high-income earners and major business transactions. The new regulations would empower FBR officers to tackle black money and tax evasion effectively.
