Non-filers’ electricity and gas connections to be suspended, says FBR chief.
In a decisive move to enhance tax revenue for the 2024-25 fiscal year, Pakistan’s Federal Board of Revenue (FBR) has announced a series of strict measures targeting individuals who fail to file tax returns.
FBR Chairman Zubair Tiwana revealed that non-filers will face severe consequences, including the suspension of their electricity and gas connections, deactivation of their SIM cards, and potential shutdowns of their businesses.
Also read: FBR imposes 25% sales tax on cars with over Rs4m price
Additionally, the Senate’s Standing Committee on Finance and Revenue has approved a proposal to impose travel bans on non-filers.
The committee session, chaired by Saleem Mandviwalla, saw multiple resolutions aimed at strengthening tax compliance.
Exceptions to these punitive actions will be granted to individuals undertaking Hajj, Umrah, children, students, and holders of the National Identity Card for Overseas Pakistanis (NICOP).
Tiwana highlighted that the list of non-filers, which includes approximately 500,000 individuals with annual incomes exceeding 2 million PKR, will also be subjected to higher withholding tax rates.
These individuals have previously disclosed their income through their tax return documents.
Also read: PTA opposes blocking of 500,000 non-filers’ SIMs
In addition to these measures, temporary filers will incur extra taxes on the purchase of vehicles, plots, and residences.
The Senate committee also sanctioned a substantial 75% withholding tax on the cellular and internet bills of non-filers.
Moreover, they approved a proposal to lower salary slabs and increase taxes.
Finance Minister Muhammad Aurangzeb has emphasized the critical need to broaden the tax base, stating that the country cannot sustain itself with the current tax-to-GDP ratio of 9.5%.
The Finance Minister calls for the removal of the concept of non-filers in Pakistan. Tax evaders must face stricter penalties to ensure everyone contributes their fair share. 🚫💰 #TaxEvasionIsACrime pic.twitter.com/d3eMS9MPB1
— ACT Alliance – Pakistan (@ACTAlliancePak) June 15, 2024
He stressed the importance of integrating everyone into the tax system and eliminating the non-filer category to improve the nation’s fiscal stability.
These comments were made following his presentation of the federal budget for 2024-25, which amounts to Rs18.9 trillion, in the National Assembly.
