Islamabad: The Federal Board of Revenue (FBR) has started preparations for the mini budget to meet the revenue shortfall.
According to the available document of the proposed policy enforcement measures, under the enforcement policy measures, it has been decided to freeze the accounts of tax defaulters and ban them from buying their vehicles and property.
Bank accounts of millions of tax evaders will be frozen, property and vehicle purchases will be banned and utilities like electricity and gas connections will be disconnected. This move is being taken in view of a possible major shortfall in achieving the first quarter (July, September) target under the IMF’s $7 billion Extended Fund Facility program.
According to FBR sources, FBR is going to take strict measures after failing to bring 32 lakh retailers into the tax net. FBR has identified 2 million nil filers out of 6 million return filers. FBR has proposed to divide non-filers into three categories.
The FBR has recommended a fine of Rs 10 lakh on those who file false or incomplete tax returns, while banning bank accounts, ban on purchase of vehicles and property, and disconnection of electricity connections have also been proposed. All these drastic measures can be implemented only through a mini-budget approved by Parliament. The government has to introduce a fiscal bill to amend the tax laws or enact an ordinance to give wider powers to the tax machinery.
