ISLAMABAD: The Federal Board of Revenue (FBR) has decided to abolish the non-filers category, imposing restrictions on 15 activities for individuals who fail to file their tax returns.
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial stated that non-filing is a fraudulent method and will be eliminated, adding that all financial transactions be conducted through banking channels to curb cash flows in the economy.
Speaking at a consultative meeting, FBR Chairman Langrial revealed that criticized the existence of the non-filer category, arguing that such classifications do not exist globally.
According to the FBR chairman, initially, five restrictions will be imposed on non-filers including property purchases, car buying, mutual fund investments, and opening current accounts. International travel, except for religious purposes, will also be subject to this mandate.
Furthermore, the non-filers will not be able to open current account in any commercial or private bank and cannot make investments in mutual funds. The government will trace these non-filers with the help of latest technology and algorithms, he said.
FBR in collaboration with State Bank of Pakistan will enhance monitoring of non-filers’ income, business dealings, and other suspicious transactions. In this regard, an ordinance will be promulgated after getting a nod from the federal cabinet.
He added the government only collected Rs25 billion in fees from non-filers, while significant potential tax revenue remains uncollected.
