Tuesday, July 23, 2024

Govt Considers Blocking Bank Accounts of Non-Filers

The government is planning to take strict measures against non-filers of tax returns by blocking their bank accounts and introducing a fixed sales tax on mobile phone imports, which will replace the current 18% tax. These changes are part of the amended Finance Bill 2024.

Initially, the proposal to block non-filers’ bank accounts was included in the original bill but was not approved. Now, the government is reconsidering this measure.

Under this plan, if non-filers ignore tax notices, their bank accounts may be blocked. While they will still be able to deposit money into their accounts, they will not be able to withdraw any funds until they get listed on the Active Taxpayers List (ATL).

To implement this, the Federal Board of Revenue (FBR) will issue an income tax general order (ITGO), which will list the names of all non-filers. This list will help enforce the new regulations and ensure compliance with tax laws.

The proposed fixed sales tax on mobile phone imports aims to simplify the tax process and generate consistent revenue. Replacing the variable 18% tax, the fixed rate will provide clarity for importers and help streamline tax collection.

These measures are part of a broader effort by the government to improve tax compliance and increase revenue. By targeting non-filers and standardizing taxes on imports, the government hopes to create a more efficient and fair tax system. The implementation of these policies will be closely monitored to ensure they achieve the desired outcomes without causing undue hardship to taxpayers.

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