Islamabad, Jan 21: Half of Pakistan’s economy relies on black money. Tax authorities can now hire 1,600 auditors to track non-filers and enforce 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 today. He discussed the Bill aimed at enforcing the Federal Board of Revenue’s (FBR) efforts to increase tax compliance and tackle undocumented wealth.
The minister said the government has remained silent on non-filers for 75 years but is now addressing the issue. Under the new tax laws, non-filers will face restrictions like being unable to carry out big transactions such as buying property, and vehicles, or investing in businesses or equity.
Read More:
Airlink to Acquire Industrial Plots for Rs. 572 Million to Boost Operations
The new laws will also grant FBR officers additional powers like blocking transactions involving black money and tax evasion. Also, the new bill introduces measures to recruit 1,600 auditors to strengthen revenue enforcement.
However, several committee members expressed concerns about the bill’s implementation, particularly the potential disruption it could cause to the economy. Lawmakers said that rushing such big changes could lead to problems and recommended caution.
Committee members discussed the challenges of Pakistan’s largely informal economy, noting that nearly half operates through black money.
Some lawmakers argued that the bill might inadvertently harm the common people, especially in terms of their ability to purchase vehicles and property.
The committee formed a five-member sub-committee to engage with stakeholders, including the FBR and the Association of Builders and Developers (ABAD) to review the Tax Laws (Amendment) Bill 2024. This sub-committee is expected to submit its report within 10 days and reveal more insights on how the bill may impact the property market and other sectors.
