2 min read
ISLAMABAD: The federal government is planning major revisions to the Tax Laws Amendment Bill 2024. These changes propose a 20% income tax on foreign online services, a possible 10-year imprisonment for sales tax fraud, and enhanced powers for junior revenue officers to arrest suspects without needing prior authorization.
The income tax rate on fees for overseas digital services will rise from 10% to 20%, impacting services such as online advertising, website maintenance, e-commerce, and email marketing aimed at users in Pakistan
Offenders can face fines of up to Rs. 10 million and prison terms of up to 10 years if tax fraud is found to have occurred. Tax fraud would include underreporting taxes, falsifying bills, and overstating refunds. The government has suggested a new meaning of “abettor” to include anyone who helps or plans tax fraud. They would face the same penalties as those committing tax fraud.
Junior FBR police can arrest suspects in tax fraud cases without asking for permission first, as long as there is an investigation after the arrest. Additionally, FBR agents investigating tax fraud may ask to have the subject added to the Exit Control List (ECL) in order to stop them from leaving the nation.
Further restrictions on non-filers are probable. Non-filers can’t buy homes and cars, and the new changes suggest they also won’t be able to buy farm tractors.
Today, the Tax Laws Amendment Bill 2024 is set to be discussed by the National Assembly Standing Committee on Finance.
