Nearly half of Pakistan’s economy runs on undocumented wealth, and tax authorities will soon be empowered to recruit 1,600 auditors to track non-filers under the Tax Laws (Amendment) Bill 2024.
Minister of State for Finance Ali Pervaiz Malik briefed the National Assembly’s Standing Committee on Finance and Revenue on Tuesday, outlining the government’s plan to strengthen the Federal Board of Revenue’s (FBR) efforts to enforce tax compliance and curb black money.
He noted that governments had largely ignored the issue of non-filers for the past 75 years but the new bill aims to change that. Under the proposed laws, non-filers will face restrictions on high-value transactions, including the purchase of property, vehicles, and investments in businesses or equity.
FBR Chairman Rashid Mahmood Langrial said the amendments primarily target high-income individuals and businesses engaged in large-scale tax evasion. The bill also grants FBR officers greater powers to block transactions linked to black money and tax evasion, while expanding enforcement capacity through the hiring of additional auditors.
However, several committee members voiced concerns over the bill’s potential fallout. They warned that sudden, sweeping measures could disrupt the economy and recommended a cautious approach. Lawmakers also highlighted challenges arising from Pakistan’s vast informal economy, estimated to account for nearly half of all activity.
Some members cautioned that the bill might unintentionally burden ordinary citizens, particularly in their ability to purchase property and vehicles.
To address these concerns, the committee formed a five-member sub-committee to engage with stakeholders, including the FBR and the Association of Builders and Developers (ABAD). The sub-committee will submit its report within 10 days, providing further insights into how the bill could affect the property market and other sectors.
