FBR to eliminate non filer category in a bold move to boost tax compliance and expand Pakistan’s tax base. This major reform will prohibit non-filers from purchasing property, buying vehicles, investing in mutual funds, opening current accounts, and engaging in international travel, except for religious purposes.
FBR Chairman Rashid Mahmood Langrial emphasized that this policy shift is part of the government’s larger transformation strategy, with the ultimate goal of increasing tax revenue and ensuring that non-filers are held accountable.
The decision to eliminate the non-filer category comes with 15 key restrictions, including barring non-filers from participating in various economic activities. The FBR has already begun collaborating with the law ministry to draft the necessary rules, which will be implemented through an ordinance. Mahmood Langrial further highlighted that advanced technologies, such as machine learning, will be employed to identify non-filers and enhance tax collection efforts.
Economic Impact of Eliminating Non-Filer Category
The elimination of the non-filer category is expected to significantly impact economic activities, particularly in sectors like property, banking, and vehicle purchases. Non-filers will no longer be able to open traditional bank accounts, with the exception of basic accounts for low-income individuals.
The FBR is also focusing on combating smuggling and tax evasion by increasing automation and strengthening its presence at key entry points across the country.
Mahmood Langrial noted that eliminating the non-filer category is part of a broader effort to modernize Pakistan’s tax collection system. These reforms are designed to create a disincentive for non-compliance and encourage taxpayers to fulfill their tax obligations. Over the next few months, the FBR will gradually roll out these new policies, allowing time for businesses and individuals to adjust.
FBR’s Vision for a Modern Tax System
In a consultative meeting with business leaders, the FBR chairman reiterated the importance of eliminating the non-filer category to establish a fairer tax system. By utilizing advanced technology and working closely with stakeholders, the FBR aims to increase tax revenue and bring untaxed sectors into the formal economy.
Also Read: PM Shehbaz Backs FBR’s Anti-Evasion Reforms
Minister of State for Finance, Ali Pervaiz Malik, emphasized the government’s commitment to addressing tax evasion and expanding the tax base, noting that these reforms are crucial for improving the country’s stagnant tax-to-GDP ratio.
Also Read: FBR Announces Final Deadline for 2024 Tax Returns
The FBR’s decision to eliminate the non-filer category represents a significant shift in Pakistan’s approach to tax enforcement, and its successful implementation will be key to ensuring a more compliant and transparent tax system.
