LAHORE – The Punjab government is gearing up to tighten the noose around salaried tax evaders as the Punjab Finance Amendment Bill 2025 is set to be tabled in the provincial assembly today for approval.
According to reports, the Punjab Assembly’s Standing Committee on Excise and Taxation has already approved the Finance Amendment Bill 2025.
The bill is expected to be passed by the Punjab Assembly either through a majority vote or unanimous consent. Following approval, it will be sent to the Governor of Punjab for final assent.
Through the Punjab Finance Amendment Bill 2025, the amendments would be made to the Punjab Finance Act 1977. Once approved, the amendments would be officially known as the Punjab Finance Amendment Bill 2025. The Punjab government has introduced new tax deduction regulations for employees as part of the bill.
According to the text of the bill, the every accounts officer of a public or private organization would be responsible for deducting tax from salaries and depositing it in the treasury.
If the officer is negligent, they would be personally liable to pay the tax amount.
Previously, tax evasion occurred due to companies not maintaining proper salary records of their employees.
Many individuals who filed taxes on their own would underreport their salaries. The committee noted that there was no clear provision holding companies accountable for the tax deductions on salaries.
The amendment aimed to make tax collection more effective. In cases where taxes are not deposited, the Excise Department would take action.
The standing committee stated that companies failing to deduct taxes from employee salaries would be issued notices following the implementation of the amendments.
As per the bill, the Excise and Taxation Department would issue recovery orders against the violators. The primary objective of the bill is to curb tax evasion and increase revenue in the public treasury. The bill had earlier been referred to the relevant committee of the Punjab Assembly.
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