May 9, 2024 KARACHI, May 9, 2024 – The Federal Board of Revenue (FBR) is considering new measures for the 2024-25 budget to combat benami (anonymous) transactions in the automobile sector and to enhance tax collection across various sectors. As part of the proposals received by FBR, a significant change could come in the form of a cap on the number of cars an individual taxpayer can register. To prevent the misuse of filer statuses, where non-filers use the names of filers to register vehicles, a maximum ownership cap of ten cars per filer is being proposed. This move aims to tighten regulations around vehicle ownership and reduce tax evasion through benami transactions. Beyond the automotive sector, the proposals extend to broader financial realms including real estate and agriculture, where substantial untaxed potential remains. Stakeholders have suggested implementing a tax on real estate which could unlock an estimated Rs 50 billion by tapping into just 10% of the sector’s untaxed potential. In agriculture, the proposals call for stricter enforcement of existing tax laws. If taxes are not paid to provincial authorities, it is suggested that the federal government should have the authority to collect these taxes. Additionally, even if taxes are paid at the provincial level, a federal tax return should be filed accompanied by a wealth reconciliation. This is aimed at addressing the issue of parking or whitening of non-tax paid and illicit money in the sector. The enforcement of wealth statements, already a requirement, is also emphasized in the proposals. The stakeholders have further recommended that the FBR should publicize the sales tax payments of prominent…