FBR to block accounts of non-filers: What you need to know

FBR is planning to take action against such persons whose transaction activity doesn’t correlate with their declared income
An undated image of the FBR building. — Reuters

An undated image of the FBR building. — Reuters 

The Federal Board of Revenue (FBR) is set to block the current and savings accounts of non-filers. According to the sources, 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.

Moreover, banking entities will not open or maintain an already opened current or savings account or any other investor portfolio securities account.

The FBR will block cash withdrawals from any of the bank accounts of any person beyond a certain amount.

It is confirmed that the tax machinery and banks will devise a mechanism for limiting banking transactions based on the declared income of individuals against CNICs. The FBR is planning to take action against such persons whose transaction activity doesn’t correlate with their declared income.

Under the new law, taxpayers must justify their income sources for financial transactions, and their family’s non-filer members, including wives, parents, and children under 25, will not be required to file tax returns for financial transactions.

Additionally, purchases exceeding 130% of declared income will necessitate the declaration of additional income or resources in tax returns, which results in filers buying an item or property worth 130% of their declared wealth.

Filers now must declare sources of income before making major purchases, like vehicles, properties, or investments in securities. 

Meanwhile, cigarettes and beverages are not to be sold without tax stamps, stickers, or barcodes.