Govt has passed an ordinance to catch tax thieves who hide their assets and income in tax declaration.
The President has signed Tax Amendment Ordinance Bill 20021 to catch tax thieves .
As per the ordinance, all those who consciously hide information to avoid tax they would be fined up to Rs.5 lacs.
All such tax avoiders may also be given a punishment of imprisonment for one year.
With the implementation of this ordinance, NADRA and FBR have been granted access to tax avoiders’ information.
The Govt servants and the parliamentarians will no longer enjoy the exemption from revealing this tax information after the implementation of this ordinance.
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FBR has been given the authority to disconnect the utility connection of Non Filers like electricity and telephone.
Nonfilers could be deprived of using banking services with the implementation of this ordinance.
NAB has been granted the authority to open 20 years old cases and access to offshore cases related to money laundering and tax evasions.
Professionals like doctors, engineers, accountants, lawyers and IT experts who don’t file their tax returns will have to pay 35% more taxes on their utility bills i.e electricity bills.
Govt is thriving to expand the tax net as a very low proportion of the society pays their taxes.
With the implementation of this ordinance, it is expected that the tax net would increase.
This ordinary would bring more people into the tax net to enhance the income of the Govt.
In Pakistan, only 28 lacs people are almost regular taxpayers.
Govt is trying to promote the tax culture as in the develooped countries.
Govt has also reduced taxes in many sectors to promote business activities like in the banking sector, automobile sector and construction sector.
For Nonfilers WHT on banking transactions was abolished in budget 2021-22 to promote banking for nonfilers.
In order to promote construction activities, Govt gave an amnesty scheme.
Govt by all means is trying to put taxes on sectors where there is a cushion and removing the unnecessary taxes which are hurdles in the way of progress.