Government Introduces Stricter Tax Measures and Mobile Import Changes

The government is contemplating significant changes to tax regulations and mobile phone imports as part of the amended Finance Bill 2024. One of the proposed measures includes restricting the bank accounts of individuals who fail to file their taxes. This means that non-filers may have their accounts frozen until they fulfill their tax obligations and are listed as compliant taxpayers in the Active Taxpayers List (ATL). While non-filers can still deposit money, they will not be able to withdraw funds until they rectify their tax status. The Federal Board of Revenue (FBR) will release an income tax general order identifying the non-filers subject to this account freezing provision.

Another key change in the Finance Bill 2024 involves replacing the current 18% sales tax on imported mobile phones with a fixed tax amount that varies based on the brand. Additionally, the government is reconsidering the disallowance of 25% of sales promotion and advertising expenses introduced in the original bill. Three options are being evaluated: reducing the disallowance rate to 20% with specific conditions, reverting to the previous status quo, or allowing a fixed percentage of sales promotion or advertising expenses.

The proposed amendments in the Finance Bill 2024 aim to streamline tax compliance and regulate mobile phone imports more effectively. By enforcing stricter measures on non-filers and adjusting the tax structure on mobile phones, the government seeks to enhance revenue collection and ensure fair practices in the market. These changes, if implemented, will have a significant impact on taxpayers and consumers alike, emphasizing the importance of adhering to tax regulations and contributing to the country's economic development.