FBR to Limit Cash Withdrawal and Plot Purchase for High-Income Tax Filers

The Federal Board of Revenue (FBR) is planning to bombard compliant taxpayers with new enforcement measures that will restrict them from withdrawing more than Rs. 30 million in cash annually. Filers who earn over Rs. 10 million in income will only be permitted to purchase cars, while they would need to give proof of their source of income before buying property. Those earning less than Rs. 10 million will be required to justify their income before making any purchases of cars, plots, or investments in securities and mutual funds. The federal government wants to do everything within and beyond its powers to achieve this fiscal year’s unrealistic tax target of Rs. 12.97 trillion. Through FBR, it aims to collect Rs. 450 billion by implementing complicated enforcement measures as mentioned above. Despite a significant revenue shortfall in the July-September quarter, Prime Minister Shehbaz Sharif has ruled out introducing a mini-budget. Finance Minister Muhammad Aurangzeb is expected to meet IMF officials next week, as the government seeks to avoid further economic challenges. With inflation, growth projections, and enforcement measures in focus, the FBR remains confident that it can meet its goals, but the pressure on both compliant taxpayers and non-filers is set to increase dramatically.