Govt plans to impose restrictions on non-filers for luxury purchases

The National Assembly Standing Committee on Finance is set to discuss the Tax Laws (Amendment) Bill, 2024 on Tuesday. The proposed legislation has the aim to restrict non-filers from purchasing, booking, or registering vehicles over 800cc, acquiring property, and buying stocks.

The withdrawal of higher withholding tax (WHT) rates for non-filers will not be quick. However, this change will be applied gradually in the 2025-26 fiscal year budget.

Moreover, the bill includes the key points that

1. Non-filers will be prohibited from purchasing vehicles over 800cc.
2. Non-filers will not be allowed to purchase property beyond a certain limit.
3. Non-filers will also be restricted from buying shares beyond a specific threshold.
4. Non-filers will not be able to open bank accounts.
5. Non-filers will be restricted from conducting banking transactions beyond a certain limit.
6. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors.

Financial companies will be instructed to freeze accounts and block property transfers of unregistered individuals, though accounts may be restored within two days of registration for sales tax.

The Federal Board of Revenue (FBR) is said to have the authority to release a list of non-registered individuals, seize their properties, and enforce compliance measures, like sealing business premises and appointing receivers for management.

Additionally, the parents, spouse, and children (up to 25 years of age) of a filer will also be considered filers.

It is important to note that these restrictions will be effective after a notification from the federal government.