15 new restrictions to be imposed on non-filers in Pakistan

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.

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.