The federal government plans to increase the cost of financial transactions for individuals who do not submit income tax returns, and it is anticipated that the Finance Bill 2024–25 will bring about significant adjustments to the tax legislation. Furthermore, for the fiscal year 2024–2025, the bill intends to execute enforcement measures valued at around Rs 300–400 billion.
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According to BR, the Federal Board of Revenue’s (FBR) Directorate General of Digital Invoicing would have more authority under the Finance Bill 2024 to compile a supply chain audit of every significant company. The FBR has prepared a series of budget recommendations to track the state of the economy in the upcoming fiscal year.
The FBR may implement a single turnover-based registration threshold for all enterprises to eradicate discrimination.
The government may potentially pass legislation mandating foreign companies that sell items to Pakistani consumers to register with the government and begin collecting federal sales tax.
Input tax claimants may be required by the government to report unusual transactions and make sure they are not a part of Missing Trader Fraud schemes. Failing to comply with this could lead to fines or legal action.
To raise an additional Rs 15-20 billion in revenue in 2024–2025, the FBR has suggested consistent modifications to the Sales Tax Act, Income Tax Ordinance, and Federal Excise Act. These amendments include raising the withholding taxes for non-filers from 0.6% to 0.9% on cash withdrawals from banks.
The government will sanction businesses that do not file income tax returns by increasing the cost of supplies to unregistered individuals.