In a bold move, the Federal Board of Revenue (FBR) has issued a warning to non-filers, signaling severe consequences such as bank account suspensions and travel bans for those who fail to comply with income tax return regulations.
Chief of Broadening the Tax Base (BTB) Muhammad Asif stressed the urgency for non-filers to register with the nearest tax office to avoid penalties, fines, utility disconnection, and the extreme measures of bank account suspensions and restricted travel.
FBR's nationwide drive
FBR Chief Broadening the Tax Base revealed that a national drive has been launched to broaden the tax base, targeting all eligible individuals and those with taxable income.
A document from the FBR official highlighted Pakistan's narrow tax base, with only around 5.2 million people registered in the tax system in 2022 out of a population of 240 million.
The country faces challenges of widespread tax evasion, a low tax-to-GDP ratio, and a shortage of tax revenues for critical public services and socio-economic development.
FBR gathers data for tax compliance
The FBR, through third-party data acquisition, has compiled information on hundreds of thousands of financial transactions of individuals still outside the tax net.
The data, available on FBR's website under "MALOMAAT," aims to bring non-compliant individuals into the tax net.
Anticipated increase in taxpayers
Director BTB estimates that 1.5 million new taxpayers will be added during the current year, emphasising the importance of broadening the tax base for the country's economic stability and growth.
With data readily available for eligible individuals to file their income tax returns, the FBR urges citizens to take advantage of the time, visit their nearest tax office, and register promptly to avoid penalties, fines, utility disconnection, and the severe consequences of bank account suspensions and restricted travel. The clock is ticking, and non-compliance may lead to serious ramifications in the coming weeks, the document added.
