KARACHI: The Finance Bill has proposed granting tax officers extraordinary powers to enforce registration compliance, including freezing bank accounts and restricting property transfers for non-registered entities.
Under the proposed measures, the Commissioner of Inland Revenue may issue written orders to banks and financial institutions to block the accounts of individuals or businesses failing to register under the law. The freeze would be lifted immediately upon registration. Affected parties may appeal within 30 days to the Chief Commissioner of Inland Revenue.
Additionally, the Commissioner may bar the transfer of immovable property by directing property registration authorities to enforce the restriction.
The bill also allows the Chief Commissioner to take further coercive actions, including sealing business premises, seizing movable property, or appointing a receiver to manage taxable activities—but only after:
A public notice is issued specifying the enforcement date.
A committee, including the Chief Commissioner, relevant Commissioner, and a trade body representative, holds an open hearing.
The decision is publicly disclosed on the Federal Board of Revenue’s website and in newspapers.
The provisions will take effect upon official notification. Critics argue the measures grant excessive authority, while supporters say they will improve tax compliance.