Islamabad: The Federal Board of Revenue (FBR) has stated that non-filers would be fined PKR 1,000 or 0.1 % of the total unpaid tax amount or whichever is higher for each day they failed to file their returns, news sources reported.
Reportedly, the FBR has issued circular 7 of 2021 regarding the update. The fine will be levied under the Tax Laws (Third Amendment) Ordinance, 2021. The FBR has started fining the tax defaulters after the amendment of Section 182 of the Tax Law.
Accordingly, Individuals whose salary makes 75% of their income shall be fined a minimum of PKR 10,000, while a minimum of PKR 50,000 will be fined to all other cases. However, the maximum penalty will not exceed 200% of the tax owed by the person. Similarly, the penalties will be reduced by 75%, 50% and 25% if the person pays the tax within one, two or three months respectively.
According to the newly included section 114B, those who are qualified for filing returns but are not on the Active Tax Payer List (ATL) shall be fine under the Income Tax General Order. The board has also been given the authority to terminate utilities (gas, electricity, and mobile phone connections) for the non-filers.
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