ISLAMABAD, Sep 25 (NNI): Federal Board of Revenue (FBR) has decided to abolish the non-filer category in Pakistan.
During a conversation, FBR spokesperson Bakhtiar Muhammad confirmed that non-filers will no longer be able to purchase vehicles by paying additional taxes.
Similarly, the facility of buying property with additional taxes for non-filers will also be revoked.
Starting from October 1, a travel ban will be imposed on non-filers, restricting them from traveling abroad. Bakhtiar Muhammad said that not every Pakistani is a non-filer; only those earning a monthly income of Rs50,000 or more who do not submit tax returns fall into this category.
The Federal Board of Revenue also plans to take major action by blocking SIM cards of non-filers as part of its crackdown on tax evasion, he added.
Earlier, the Federal Board of Revenue announced that it will launch action against unregistered businesses after October 1. The crackdown will target individuals conducting business under benami (undisclosed ownership) or fake names.
According to FBR officials, third-party data collection methods will be employed to gather information on unregistered businesses. Current FBR records reveal that only 300,000 manufacturers are registered for sales tax in Pakistan.
On the other hand, the Federal Board of Revenue (FBR) has decided to impose 15 new restrictions on non-filers.
Sources said that initially, only five restrictions will be imposed on non-filers who would not be able to purchase vehicles and property, while they will not be allowed to travel abroad.
Furthermore, the non-filers will not be able to open current account in any bank of the country and cannot make investments in mutual funds.
Moreover, the government will trace these non-filers with the help of latest technology and algorithms. The government in collaboration with State Bank of Pakistan (SBP) will enhance monitoring of non-filers income, business dealings and other suspicious transactions.
An ordinance will be promulgated after getting a nod from Prime Minister Shehbaz Sharif in this regard. It is necessary to mention here that FBR collected Rs25 billion from non-filers during previous fiscal year.
Sources further said that Federal Board of Revenue will expand manpower and automation on different entry points of the country to curb smuggling. NNI
