Islamabad, Dec 26: The Standing Committee on Finance and Revenue has unanimously approved the Tax Laws Amendment Bill 2024, introducing measures designed to increase tax compliance and align declared incomes with assets and expenditures.
Key provisions of the bill empower the Federal Board of Revenue (FBR) to pre-audit sales and scrutinize high-value purchases that exceed a taxpayer’s declared income. Chairman FBR Rashid Langrial explained to the committee that the amendments primarily target the top 5 percent of income earners, who, despite substantial earnings, evade taxes. He assured that 95 percent of the population would remain unaffected by these changes.
Under the amendments, taxpayers must justify their declared income about their lifestyle and assets. Purchases exceeding 130 percent of declared income will require the filer to disclose additional income or resources in their tax returns. Major acquisitions such as vehicles, properties, and securities must now be backed by declared sources of income.
Pre-audit mechanisms have also been approved for high-value transactions involving gold, foreign currency, and other significant assets. Additionally, the sale of cigarettes and beverages will be contingent upon tax stamps, stickers, or barcodes to curb evasion in these sectors.
Finance Minister Muhammad Aurangzeb highlighted the urgent need to improve Pakistan’s tax-to-GDP ratio to 13.5 percent within three years, with provinces contributing an additional 3 percent. These measures, he stated, are critical for ensuring fiscal sustainability.
The committee also recommended allowing pensioners and non-filers to open simplified Asaan bank accounts, signaling a step toward financial inclusion for underserved populations. The Tax Laws Amendment Bill 2024, if implemented effectively, is poised to enhance revenue collection, curb tax evasion, and create a more equitable fiscal framework.
