NA Committee approves relaxing restrictions on non-filers

Islamabad: The National Assembly Standing Committee on Finance and Revenue has approved amendments easing restrictions on non-filers, allowing them to purchase rickshaws, motorcycles, tractors, and cars up to 800cc.

The decision came as part of a broader review of the Tax Laws (Amendment) Bill 2024, aimed at refining the tax system and addressing stakeholder concerns. During the meeting, chaired by MNA Naveed Qamar, the committee also approved mandatory reporting by banks of transactions exceeding an individual’s declared income in tax returns.

Read: FBR’s property buying ban for non-filers put on hold

The committee discussed various provisions of the bill and agreed to finalize the remaining sections in its next session. MNA Bilal Azhar Kayani, convener of the sub-committee on finance and revenue, presented the committee’s report, which was unanimously adopted.

Additionally, the committee sought greater clarity on the definition of “cash and equivalent assets” in Clause (5)(a) of the bill and directed the Federal Board of Revenue (FBR) to finalize its updated online system and mobile app, with a demonstration expected within two months.

Read: Non-Filers barred from high-value banking transactions, property, share purchases:

Other key decisions included:

• Deferring amendments to the Federal Excise Act 2005 for the next meeting.
• Recommending that the federal government, not the FBR, determine transaction value thresholds to prevent undue restrictions on property purchases.
• Revising the definition of an “eligible person” to include parents, spouses, and dependent children as immediate family members.
• Directing the FBR to install points of sale at all hotels in Islamabad and expand to other service providers in the federal capital.
• Ensuring Nadra, provincial excise departments, and land authorities share property purchase data with the FBR.
• Approving the hiring of new auditors and experts for the FBR, with strict penalties for leaking taxpayer information.

Read: FBR draft in making to eliminate categories of ‘late filers, ‘non-filers’

During the discussion, MNA Dr. Nafisa Shah raised concerns that some of the new tax amendments could lead to capital flight, potentially harming the economy.

The meeting was attended by committee members, Minister of State for Finance Ali Pervaiz Malik, the finance secretary, the FBR chairman, and senior finance ministry officials.