The government will block bank account of non-filers. They plan to set fixed sales tax on mobile imports. The 18 percent sales tax will be replaced. The revised Finance Bill 2024 includes these changes.
Sources said freezing accounts was in the original bill. But it was not passed. Now, non-filers may face blocked accounts. They must appear on the Active Taxpayers List (ATL). Non-filers can deposit money but not withdraw. This continues until they become filers.
The FBR will issue an order. This order lists non-filers. Their bank accounts will be blocked. This happens if the proposal becomes law.
The amended bill changes mobile phone import tax. The tax will depend on the brand. The fixed amount replaces the 18 percent tax.
The budget for 2024-25 disallowed 25 percent of advertising expenses. This is under the royalty arrangement. Now, the Finance Bill 2024 may change this.
Three options are being considered. First, the FBR may reduce the rate. It could drop from 25 to 20 percent. Conditions must be met for this.
Second, the FBR may restore the old law. This is the law before the Finance Bill 2024. In this case, the FBR will have rule-making powers.
Third, the government may allow a set percentage. This applies to sales promotion or advertising expenses.
These changes aim to increase tax compliance. The government wants non-filers to become filers. Fixed sales tax aims to simplify the process. Changing advertising expense rules aims to balance costs. These moves will impact businesses and individuals.
The government hopes these changes will work. Non-filers will need to comply. Businesses will need to adjust. The changes aim to improve tax collection. They also aim to simplify tax rules.
To read our blog on “Non-filers face penalties in a strict new budget crackdown,” click here.
