Islamabad: The Federal Board of Revenue (FBR) has recently announced plans to eliminate the category of non-filers and implement new measures aimed at improving tax compliance, according to a news source on September 25.
In line with the shared details, the FBR is actively working on implementing these changes through an ordinance, collaborating with the law ministry to establish the necessary regulations. This initiative will initially introduce five restrictions on non-filers, including limitations on property purchases, vehicle acquisitions, international travel (excluding religious trips), the opening of current bank accounts, and investments in mutual funds.
The government will utilise advanced machine learning and algorithms to identify non-filers more effectively. This approach will help ensure that individuals whose income levels do not align with their transaction volumes are monitored appropriately, as the Prime Minister approves.
FBR Chairman Rashid Mehmood highlighted that traditional bank checks have become less effective, with only PKR 25 billion collected from non-filers last year in the form of fees. He emphasised that while industrialists support the automation of tax processes, the lack of taxation on the agriculture sector could hinder the overall tax-to-GDP ratio.
The planned restrictions aim to enhance tax compliance and broaden the tax base, making it necessary for individuals to comply with tax regulations. The government’s approach marks a shift from the non-filer classification, meaning individuals will no longer be able to pay a nominal fee to bypass tax obligations on specific transactions.
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