Offshore digital services may be taxed 20%

The government may impose a 20% income tax on offshore digital services, introducing a 10-year prison sentence for sales tax fraud, and empowering junior Federal Board of Revenue (FBR) officers to arrest suspects without prior approval from higher authorities. The government is also considering empowering FBR officers with the power to request placing individuals involved in tax fraud on the Exit Control List (ECL) during investigations, preventing them from fleeing the country. Government sources reveal that further amendments to the Tax Laws Amendment Bill 2024 are being considered to increase penalties for tax fraud, non-filers, and ineligible individuals. Under the proposed changes, ineligible persons—who were previously barred from purchasing homes and cars—may also be prohibited from buying agricultural tractors, according to the latest proposals under review.