Islamabad, December 26, 2024 – The Senate Standing Committee on Finance has approved the Tax Laws (Amendment) Bill, 2024, marking a significant step toward tightening tax compliance measures.
The decision, made during a meeting in Islamabad, includes restrictions on non-filers from opening bank accounts and buying or selling vehicles, shares, and property. The approval underscores the Senate’s ongoing efforts to strengthen Pakistan’s tax regime.
The committee, chaired by Senator Salim Mandviwala, convened in Islamabad to deliberate on the proposed amendments to tax laws. Committee members raised pertinent questions, emphasizing the need for individuals to declare their purchases in tax returns before completing transactions. It was highlighted that many people operate business accounts but are not registered as filers, a gap the bill aims to address.
PTI Senator Shibli Faraz remarked on the leniency often shown toward tax evaders, noting that genuine taxpayers face more scrutiny. This comment drew laughter from the committee. In response, State Minister for Finance Ali Pervaiz humorously acknowledged that even some senators might occasionally attempt to evade taxes.
The Senate committee also focused on the ongoing solar scandal, with the chairman inquiring about the billions of rupees involved. It was revealed that suspects in the case are absconding. FBR officials assured the Senate committee that efforts are underway to resolve the matter, while the state minister reaffirmed the government’s commitment to raising the tax-to-GDP ratio to 13.5%.
Additionally, the Senate committee approved provisions to ensure taxpayer data confidentiality for auditors and experts while introducing a clause to share high-risk individuals’ data with banks. These measures aim to enhance transparency and accountability.
Last week, the government introduced the Tax Laws (Amendment) Bill, 2024, in the National Assembly to empower tax authorities with extensive enforcement capabilities. Key measures include restricting non-compliant individuals from financial transactions and sealing unregistered businesses. The legislation also proposes replacing the terms ‘filers’ and ‘non-filers’ with ‘eligible persons’ and ‘ineligible persons.’
The Senate’s approval reflects its commitment to improving tax compliance. Finance Minister Muhammad Aurangzeb emphasized that the amendments aim to simplify tax collection and combat evasion. However, concerns persist about the potential overreach of tax authorities and its impact on small businesses and individual taxpayers, particularly women.
The bill defines “eligible persons” as individuals who have filed their most recent income tax returns and declared adequate resources. Immediate family members, including spouses, parents, and dependent children, are also included. The Senate’s endorsement reinforces its pivotal role in shaping fiscal policies to promote economic stability and equity.