Islamabad: The Federal Board of Revenue’s (FBR) deadline to file income tax returns for the 2023-24 financial year expires today, with no further extensions granted, as reported on October 14.
As per details,Chairman Rashid Mehmood Langrial recently cautioned individuals who have yet to file their returns about the potential consequences of non-compliance. He warned that those who fail to submit their tax returns could face significant restrictions, including being barred from making major transactions such as purchasing property or vehicles and even from operating bank accounts.
Langrial emphasised that October 14 would be the final date for filing tax returns. After this date, the government plans to abolish the category of non-filers, which would impose further restrictions on these individuals, potentially even banning air travel. Last month, the FBR introduced a series of measures aimed at improving tax compliance and broadening the tax base by eliminating the non-filer category. These measures include restrictions on purchasing property, buying vehicles, investing in mutual funds, opening current accounts, and engaging in international travel, except for religious purposes.
The government’s goal is to enhance the audit capacity of the tax machinery and address the issue of under-filing, which has been a significant challenge in Pakistan’s tax system. By increasing the tax-to-GDP ratio to 15% along with petroleum levies, and enabling provinces to contribute an additional 3% of GDP, the overall tax revenue in the country could potentially reach 18%.
