The FBR might freeze Bank Accounts of Non-Filers.

The FBR might freeze Bank Accounts of Non-Filers.

It was included in the initial Finance Bill 2024 but did not receive approval.

The government intends to block the bank accounts of Non-Filers and has decided to change the legislation prohibiting the deduction of 25 per cent of sales promotion and advertising expenses under the modified Finance Bill 2024. Additionally, the sales tax on mobile phone imports will now be fixed at 18 per cent.
According to sources, the original Finance Bill 2024 included a proposal to freeze the bank accounts of non-filers; nevertheless, the bill was not passed.

The government may take into consideration a plan to restrict non-filers bank accounts until they are listed on the Active Taxpayers List (ATL) if they do not reply to notices. The non-filers would still be able to make bank deposits, but they would not be able to take out the money until they were listed on the ATL and became filers.

If this suggestion is included in the modified Finance Bill 2024, the FBR will issue the income tax general order (ITGO) listing the names of non-filers so that their bank accounts can be blocked.

A fixed sales tax based on the brands of the imported phones would take the place of the current 18% sales tax on mobile phone imports under the modified Finance Bill 2024.

The government has excluded 25% of advertising and sales promotion costs under the royalty agreement in the budget for 2024–2025.

Three possibilities are now being considered by the government through amendments to the Finance Bill 2024.

if the predetermined requirements are met, the FBR may lower the rate from 25 to 20 per cent.
Former legal position existing before Finance Bill 2024 could be reinstated by the FBR. In this instance, the FBR will be given the authority to create rules to handle situations like these.

A specific portion of advertising or sales promotion costs may be approved by the government.