
The federal government is considering major revisions to the Tax Laws Amendment Bill 2024. These changes include a 20% income tax on offshore digital services, a 10-year jail term for sales tax fraud, and giving junior revenue officers more power to arrest suspects without prior approval.
The proposed amendments would increase the income tax on fees for offshore digital services from 10 to 20%. This would affect services like online advertising, website maintenance, e-commerce, and email marketing aimed at Pakistani users.
The government proposes to increase tax fraud penalties such that the convicted is liable to prison for up to 10 years and faces a fine of up to Rs10 million.
Moreover, Tax fraud includes underdeclaration of taxes, fake bills and overstatement in refund claims. The government further proposed a new definition of an “abettor” to any person who either abets or conspires for tax fraud under the same provision.
Junior FBR officers can be allowed to arrest suspects in cases of tax fraud without prior permission, subject to post-arrest oversight. Moreover, FBR officers may also request that suspects of tax fraud be placed on the ECL to avoid fleeing the country.
Govt imposes restrictions on non-filers
Restrictions on non-filers will likely increase further, while non-filers are already barred from purchasing homes and cars, the latest amendments propose prohibiting them from buying agricultural tractors.
The National Assembly Standing Committee on Finance is scheduled to discuss the Tax Laws Amendment Bill 2024 on Tuesday.