Budget 2024-25: Fines on unregistered traders, non-filers proposed

ISLAMABAD: As preparations for the budget 2024-25 are underway, the federal government has decided to enhance the crackdown against those not registered in Tajir Dost App and increase taxes on non-filers, aiming to bring them into the tax net.

According to FBR sources, notices will be sent to traders who are not registered in the Tajir Dost App and a fine of up to 10,000 rupees will be imposed under Section 182 of the Income Tax Ordinance for not registering with the app.

As negotiations between Pakistan and the International Monetary Fund (IMF) continue for the upcoming budget there is a possibility of increasing the tax on imported vehicles of more than 1300 cc and withholding tax on all new vehicles of more than 850 cc.

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Moreover, sources privy to the development said that there is a proposal to impose additional tax on cash withdrawals from banks by non-filers. It is also proposed to increase the advance tax from 0.6% to 0.9% on non-filers for withdrawals of more than 50,000 rupees.

The increase in cash withdrawal tax is estimated to collect more than 15 billion rupees.

Furthermore, in the upcoming budget, it has also been proposed to increase the tax on the import of non-essential and luxury items. The budget is also likely to increase duty on non-essential and luxury items.

In the upcoming budget FY 2024-25, the government is considering abolishing or reducing tax concessions in the Sixth Schedule.