ISLAMABAD, Pakistan: In a bid to increase the number of taxpayers and boost tax collections, the federal government has decided to eliminate the non-filer category which will impose several restrictions on individuals who are not filing taxes.
According to media reports, the Federal Board of Revenue (FBR) has decided to abolish the non-filer category and impose 15 restrictions on those not paying taxes.
Initially, five restrictions will be enforced including bans on property transactions, vehicle purchases, international travel (except for religious purposes), opening current accounts, and investing in mutual funds.
Eliminating the non-filer category means that all individuals who previously avoided paying taxes on business transactions by paying a small fee will no longer be able to do so. They will now have to pay the full duties and taxes imposed on them.
In this regard, the FBR Chairman Rashid Mahmood Langrial said that 15 specific activities of non-filers will be restricted with an initial focus on five key sectors. He added that these measures are part of FBR’s reform plan, which has already been approved by the prime minister.
Meanwhile, sources have reported that an ordinance will be issued to implement the decision to eliminate the non-filer category. The FBR is already working on the legal provisions of the ordinance with assistance from the Ministry of Law.
The FBR Chairman criticized the concept of non-filers, stating that such classifications do not exist globally, and the focus should be on tax compliance. He mentioned that the identification of non-filers will be done using advanced machine learning and algorithms.
Rashid Mahmood Langria further added that last year, only Rs 25 billion were collected from non-filers as fees while the potential tax revenue from these individuals has still not been fully realized.
Under the new policies, non-filers will be prevented from opening traditional bank accounts; however, low-income individuals will still be able to open basic accounts.
