FBR to Block Both Current and Savings Accounts of Non-Filers

The Federal Board of Revenue (FBR) will now block the current and savings accounts of non-filers. Sources informed ProPakistani that the prohibition clause to block both savings and current accounts of non-filers was approved by the Senate Standing Committee on Finance and Revenue on Friday when it considered the Tax Laws Amendment Bill 2024. Sources said banking entities will not open or maintain an already opened current or savings account or any other investor portfolio securities account. FBR will block cash withdrawals from any of the bank accounts of any person beyond a certain amount. It has been agreed that the tax machinery and banks will devise a mechanism for limiting banking transactions based on the declared income of individuals against CNICs. The plan is that FBR will take action against such persons whose transaction activity doesn’t correlate with their declared income. Also, purchases exceeding 130 percent of declared income will necessitate the declaration of additional income or resources in tax returns. This means that filers can purchase an item or property worth 130 percent of their declared wealth. Filers must now declare sources of income before making major purchases such as vehicles, properties, or investments in securities. Additionally, pre-audit mechanisms for high-value sales, including gold and foreign currency, were also approved by the committee. Meanwhile, cigarettes and beverages won’t be sold without tax stamps, stickers, or barcodes.