TRADE & ECONOMY

Govt Empowers FBR to Crack Down on Non-Filers, Freeze Bank Accounts

Govt authorizes FBR to forcibly register non-filers under Finance Bill 2025. New powers include freezing bank accounts of unregistered individuals.
2025-06-18
Govt Empowers FBR to Crack Down on Non-Filers, Freeze Bank Accounts

The federal government has granted sweeping powers to the Federal Board of Revenue (FBR) to forcibly register individuals who are eligible to pay taxes but fail to do so voluntarily.

The move is part of the newly passed Finance Bill, which outlines fiscal measures set to take effect from July 1, 2025. The bill introduces several strict provisions under the Sales Tax Act to combat tax evasion and improve compliance.

Under the new provisions, if a person qualifies for registration under the Sales Tax Act but does not register voluntarily, the FBR’s authorized officer or the Commissioner of Inland Revenue will have the authority to register that person unilaterally, based on investigative findings.

Significantly, the government has added two new sections—14AC and 14AD—into the law to empower tax authorities further.

Section 14AC gives the Commissioner Inland Revenue the authority to freeze bank accounts of non-filers through a written order. The freeze will remain in place until the person complies with the registration requirement.

This marks one of the most aggressive legal tools to date aimed at bringing tax evaders into the fold. Officials say the steps are critical to increasing national revenue and reducing dependency on external debt.

“These are necessary actions to expand the tax base and ensure fairness in the system. Those who have long avoided taxes will now face serious consequences,” a senior tax official stated.

The Finance Bill is part of the broader reform agenda to strengthen fiscal discipline and ensure equitable tax collection across all sectors of the economy.