Bank transactions to be blocked for non-filers

The government has decided to bar non-filers from all banking and financial transactions for the enforcement of tax laws and to ensure their compliance.

Prime Minister Shehbaz Sharif has given the go-ahead to the Federal Board of Revenue Chairman Rashid Mahmood Langrial to submit summaries to the federal cabinet about FBR’s transformation plan.

The authorities were working to transform the FBR by adding digitalisation to the structure. 

The plan aims to reduce the circulation of cash currency, as Pakistan’s level of cash currency circulation is higher in the region, with 25 percent, Bangladesh and India were at 14 percent, while Malaysia was half at 7 percent.

Additionally, it was proposed in the federal cabinet meeting that the bank accounts of unregistered manufacturers, wholesalers, and distributors with an annual Rs250 million would be frozen.

Similarly, retailers’ unregistered bank accounts with an annual turnover of Rs100 million would also be seized with a new penalty of Rs1 million.

Apart from this, the FBR also decided not to extend the deadline for filing the tax returns.

“The FBR has set the deadline of September 30 for filing the tax, and would not be extended,” said the spokesperson.

The official said the government was introducing measures that would help to forestall the non-filers from purchasing the property.