The Federal Board of Revenue (FBR) on Wednesday decided to eliminate the category of non-filers and impose 15 restrictions on tax evaders, of which 5 will be implemented initially.
The restrictions will include bans on property purchases, vehicle acquisitions, international travel, opening current accounts, and investing in mutual funds.
The FBR announced the introduction of multiple restrictions targeting non-filers to enhance tax compliance and broaden the tax base, thereby eliminating the non-filer category.
The initial restrictions will include the purchase of property, acquisition of vehicles, investment in mutual funds, opening current accounts, and international travel (except for religious trips).
The government is abolishing the non-filer category, meaning individuals who previously paid a nominal fee to avoid paying taxes on such transactions will no longer be able to do so.
FBR Chairman Rashid Mahmood Langrial revealed that 15 specific activities would be restricted for individuals who do not file tax returns, with an initial focus on 5 key areas. These measures are part of the FBR’s transformation plan, which has already received approval from the Prime Minister.
According to the media reports that this initiative will be implemented through an ordinance, and the FBR is already working on its regulations, involving the Ministry of Law in the process.
The FBR Chairman criticized the concept of non-filers, stating that such classifications are not found worldwide and should be abolished, emphasizing that the focus should be on individuals who comply with tax regulations as well as those who do not. “We will identify non-filers through modern machine learning and algorithms.”
He added that last year, only 25 billion rupees were collected from non-filers in fees, while potential tax revenue from these individuals remains uncollected. Under the new policies, non-filers will be prohibited from opening traditional bank accounts, except for basic accounts for low-income individuals. To combat smuggling, the FBR is enhancing automation and workforce at key internal locations across the country.
