FBR Abolishes Non-Filer Category, Introduces 15 Restrictions for Non-Taxpayers

News Desk

Islamabad:  The Federal Board of Revenue (FBR) has announced its decision to abolish the non-filer category and impose 15 restrictions on individuals who fail to pay taxes.

Initially, five key restrictions will be implemented, including a ban on the purchase of property, vehicles, international travel (except for religious purposes), opening of current accounts, and investment in mutual funds.

In an effort to enhance tax compliance and broaden the tax base, the government will identify non-filers using advanced machine learning and algorithms.

This initiative, approved by Prime Minister Anwaar-ul-Haq Kakar, will also involve close monitoring of citizens whose income does not match their transaction volumes. An ordinance will soon be introduced to enforce these changes.

FBR Chairman Rashid Mehmood Langrial stated that the concept of non-filers is not recognized internationally and should be abolished.

He revealed that last year, only Rs 25 billion was collected from non-filers in the form of fees, far below their potential tax contributions. To address this gap, stricter measures will be enforced, including restrictions on transactions through bank checks, which have increasingly become an alternative currency.

In addition, the FBR, in collaboration with the State Bank of Pakistan, will increase scrutiny on high-value transactions, focusing on individuals whose spending exceeds their declared income. The FBR is also ramping up efforts to combat smuggling by enhancing automation and manpower at key entry points across the country.

Industrialists have expressed support for the automation drive but stress the need for the agricultural sector to be brought into the tax net to ensure that the tax-to-GDP ratio improves.

The FBR is finalizing the rules and regulations for these changes, with an ordinance expected to be issued in the near future.
The report was published in Daily Jang on September 25, 2024.