Federal cabinet opposes proposal to issue ordinances to ‘increase tax revenue’

The federal cabinet has opposed a recommendation to issue four ordinances aimed at generating tax revenue, 24NewsHD TV channel reported on Thursday.

Opting to seek parliamentary approval for the proposed measures, the cabinet directed that the proposed draft be presented before parliament for deliberation and enactment.

These amendments include sweeping changes to the Sales Tax Act, Income Tax Ordinance, Federal Excise Act, and the ICT Act.

Reportedly, non-filers may face a ban on purchasing land, vehicles, and other significant assets. However, exemptions will apply to motorcycles, rickshaws, tractors, and vehicles with an engine capacity of up to 800cc.

The bill proposes measures to prevent the sale of goods without tax stamps, including the authority to seize such items.

Unregistered persons could face restrictions on banking transactions, the operation of accounts, and the transfer or seizure of immovable property.

The Federal Board of Revenue (FBR) would gain powers to seal business premises of non-compliant individuals and share tax-related data of high-risk individuals.

The bill aims to replace the existing filer and non-filer classifications with eligible and ineligible individuals.

The cabinet instructed FBR officials to consult provincial governments regarding these measures. Affected citizens would have the right to appeal decisions within 30 days.

The Finance Ministry has expressed concern over the lack of tax compliance, noting that citizens often fail to file tax returns after completing transactions.

The proposed bill emphasizes the inclusion of close family members’ financial details in income tax returns, including parents, spouses, and dependent children.