The amended Finance Bill 2024 in Pakistan has proposed significant reforms aimed at enhancing tax compliance and revenue collection through two contentious measures: the potential blocking of bank accounts for non-filers of income tax returns and the introduction of a fixed sales tax on mobile phone imports, replacing the existing 18% tax rate. One of the most debated provisions of the amended Finance Bill is the proposal to restrict bank accounts of individuals who have failed to file their income tax returns despite being legally obligated to do so. The rationale behind this measure is to compel tax compliance by imposing financial restrictions on those who neglect their tax obligations. If implemented, non-filers who disregard notifications and fail to rectify their tax status may face the consequence of having their bank accounts blocked. Although they would still be allowed to deposit funds into their accounts, they would not be able to withdraw any money until they fulfill their tax responsibilities and are listed on the Active Taxpayers List (ATL). The Federal Board of Revenue (FBR) would likely issue income tax general orders (ITGOs) identifying non-filers, which would initiate the process of restricting account activities. Proponents argue that such measures are essential for improving tax collection efficiency and funding essential public services and infrastructure projects in Pakistan. By broadening the tax base and ensuring greater adherence to tax laws, the government aims to create a more equitable and sustainable fiscal environment. Critics, however, express concerns about the potential infringement on individual financial rights and practical challenges for non-filers, particularly those facing genuine difficulties in complying with tax obligations. There are also apprehensions about the effective implementation of these measures and the need for robust safeguards to protect taxpayers' rights against potential misuse of such powers. Another significant amendment proposed in the Finance Bill is the introduction of a fixed sales tax on imports of mobile phones. Currently, mobile phone imports in Pakistan are subject to a variable tax rate of 18%, which has been criticized for its complexity and inconsistency. The proposed change seeks to replace this variable rate with a fixed amount, thereby simplifying tax calculations and ensuring a more predictable revenue stream from the mobile phone sector. Mobile phones constitute a substantial portion of consumer goods in Pakistan, and policymakers view this sector as a vital source of potential tax revenue. By introducing a fixed sales tax, the government aims to streamline tax administration related to mobile phone imports, providing clarity for importers and manufacturers while optimizing tax revenues. The proposals outlined in the amended Finance Bill have sparked considerable debate and controversy within Pakistan's economic and legislative circles. Advocates argue that these measures are necessary steps towards modernizing the tax system, enhancing revenue collection, and promoting fiscal discipline. They emphasize the importance of ensuring that all individuals and businesses contribute fairly to the country's tax revenues, which are crucial for sustaining economic growth and funding public services. However, critics raise several valid concerns regarding the potential repercussions of these measures. Blocking bank accounts of non-filers could disproportionately affect vulnerable individuals and small businesses, who may struggle to navigate the complexities of tax compliance. There are worries about the potential misuse of such powers, including arbitrary account restrictions and the need for stringent safeguards to prevent abuse of taxpayer rights. The introduction of a fixed sales tax on mobile phone imports also faces scrutiny, particularly from stakeholders in the telecommunications and consumer electronics sectors. While simplifying tax calculations may benefit businesses by reducing administrative burdens, there are concerns about the impact on consumer affordability and market dynamics. Critics argue that a fixed tax rate may not accurately reflect market fluctuations and could hinder innovation and investment in the mobile phone industry. In conclusion, the proposed reforms in the amended Finance Bill 2024 represent a pivotal moment in Pakistan's ongoing efforts to strengthen its tax system and boost revenue collection. The measures to block bank accounts of non-filers and introduce a fixed sales tax on mobile phone imports aim to address longstanding challenges in tax administration and fiscal management. While proponents highlight the potential benefits of these reforms for enhancing tax compliance and economic stability, significant concerns remain regarding their implementation, impact on individual rights, and broader economic implications. As these proposals continue to undergo scrutiny and potential revisions, the balancing act between fostering tax compliance and protecting taxpayer rights will be crucial. Policymakers must navigate these complexities carefully to ensure that any reforms effectively achieve their intended goals while safeguarding the interests of all stakeholders in Pakistan's economy.