Chairman FBR briefs the National Assembly’s Standing Committee on the proposed Tax Amendment Law:
The Federal Board of Revenue (FBR) is imposing new restrictions on individuals with black money or those evading taxes, announced Chairman Rashid Mahmood Langrial during a briefing to the National Assembly’s Standing Committee on Finance.
“Non-filers will face significant limitations, including being barred from conducting economic transactions, purchasing cars or plots, and making investments,” he said.
The FBR has also sought the authority to suspend bank accounts of non-compliant individuals, with formal advance notices and a 15-day registration period for sales tax. Industrial unit owners will have the right to appeal following a hearing.
The committee, chaired by Syed Naveed Qamar, has begun a clause-by-clause review of the draft Tax Amendment Law.
Minister of State for Finance Ali Pervaiz Malik also provided insights into the bill, emphasizing the long-standing efforts to broaden the tax base.
Malik highlighted the necessity of bringing undocumented wealth to light and shifting from indirect to direct taxation to improve fiscal consolidation.
The Senate Committee has approved the Tax Laws Amendment Bill and forwarded its recommendations to the National Assembly’s Committee.
Chairman Langrial noted that tax revenues have not increased proportionally to growth and inflation, despite recent hikes in sales and income taxes.
He also mentioned that the bill grants the Cabinet the authority to implement the changes gradually, with a complete review before final decisions are made.
Committee Member Hina Rabbani Khar called for fixing the tax system machinery, citing ongoing issues and corruption within the FBR.
FBR officials revealed that only 30,000 out of 300,000 industrial connections are registered, and those with significant annual incomes should be paying taxes.
The new measures aim to reduce the money in circulation and address the economic pressure caused by a shortage of foreign exchange. However, the Committee Chairman warned that these laws might increase problems and difficulties for the public during the current government’s tenure.