Pakistan Cracks Down on Tax Evaders with New Bill

The Pakistan government introduced a bill to enforce strict measures against tax evaders, limiting their ability to open bank accounts and purchase luxury items. This move comes as part of efforts to enhance revenue collection and align with IMF agreements.

In a decisive move against tax evaders, the Pakistan government has introduced a bill in parliament to impose strict restrictions on non-filers of tax returns. Finance Minister Muhammad Aurangzeb presented the Tax Laws (Amendment) Bill, 2024, aimed at preventing non-filers from opening bank accounts and purchasing cars above 800cc.

The proposed legislation goes further to ban non-filers from buying shares beyond a certain limit and making high-value bank transactions. Their bank accounts could be frozen if they fail to register with the Federal Board of Revenue (FBR), which will also restrict property transfers.

These measures are part of the government's strategy to bolster revenue collection following an agreement with the IMF for a USD 7 billion loan. The FBR has set an ambitious Rs 12.913 trillion tax target for the fiscal year, marking a significant increase from the previous year.