The federal government is set to impose stricter regulations on non-filers as the Tax Law Amendment Bill 2024-25 has been introduced in the National Assembly.

According to the proposed amendments, non-filers will face significant restrictions on their financial activities.

Key provisions of the bill include:

• Bank Account Restrictions: Non-filers will be prohibited from opening bank accounts and making excessive banking transactions.
• Property Acquisition Limits: They will not be allowed to purchase properties beyond a specified limit and will be completely barred from acquiring excessive shares.
• Vehicle Purchase Ban: Non-filers will be restricted from buying vehicles with engine capacities exceeding 800 CC, although they will still be permitted to purchase motorcycles, rickshaws, and tractors.
• Freezing of Accounts: Bank accounts of unregistered businesses will be frozen, and non-filers will be unable to transfer property.
• Government Authority to Sell Property: The government will have the authority to sell properties owned by unregistered individuals, with the Federal Board of Revenue (FBR) issuing lists of those affected, leading to account freezes.
• Sales Tax Registration Enforcement: Non-filers who do not register for sales tax will face account freezes and restrictions on property transfers. Accounts will be unfrozen two days after completing sales tax registration, but individuals will need to appeal to the Chief Commissioner to open accounts.

Additionally, the amendment stipulates that the spouses and children under the age of 25 of registered filers will also be considered filers. These restrictions will take effect following a notification from the federal government.

The proposed amendments aim to enhance tax compliance and increase the government’s revenue collection efforts.