Prime Minister Shehbaz Sharif has approved new restrictions targeting both compliant taxpayers and non-filers. Compliant taxpayers will now be barred from purchasing assets beyond their explainable income, while non-filers will be prohibited from acquiring major assets like property.

Additionally, the Prime Minister approved a Rs34 billion package to modernize the Federal Board of Revenue (FBR). During a meeting on Thursday, he ruled out the introduction of a mini-budget, tasking FBR Chairman Rashid Langrial with bridging the anticipated Rs200 billion revenue shortfall.

The five-point plan approved by the government includes setting up 20 new customs posts near the River Indus to combat smuggling and introducing 1,560 private consultants to assist in audits. The PM also endorsed abolishing four senior positions within the FBR and converting them into Director-General posts.

The transformation plan focuses on rewarding high-performing tax officers and tightening scrutiny on taxpayers through digital means. Compliant taxpayers who under-declare their assets will face restrictions on purchasing high-value items like homes, cars, and plots. Non-filers will be restricted from buying property and opening bank accounts, subject to legal amendments.

Furthermore, the PM agreed to a proposal to deny non-filers the right to invest in mutual funds and the stock market. A new column will be added to income tax returns, requiring taxpayers to disclose the current value of their assets.

The Rs34 billion allocated to the FBR will be used for purchasing scanners, paying higher salaries, and setting up new checkposts. The PM also approved performance rewards for tax officers, ranging from Rs11,000 to Rs2.3 million per quarter, based on rank. However, the plan has been criticized for favoring customs officers over Inland Revenue Service officers and lacks provisions for career progression and logistics support.

The PM has emphasized the importance of going after compliant taxpayers while ensuring non-filers face stricter penalties. The FBR’s focus will initially be on sectors like tobacco, fertilizers, beverages, and cement, with plans to hire a private panel of experts for digitizing key industries.

The transformation plan comes after recent concessions to retailers, exempting them from disclosing their bank accounts and assets.