Pakistan Rupee Exchange Rate
The government has decided to eliminate the non-filer category and impose 15 new restrictions on individuals who do not pay taxes. Initially, 5 key restrictions will be enforced, targeting activities such as property and vehicle purchases, international travel (except religious pilgrimages), opening current accounts, and investing in mutual funds. These measures are part of the Federal Board of Revenue’s (FBR) strategy to expand the tax base and bring non-filers into the formal tax system.
FBR Chairman, Rashid Mahmood Langrial, explained that these steps are essential to increase tax compliance and reduce tax evasion. In previous years, non-filers were allowed to engage in certain financial transactions by paying a minor penalty or withholding tax. However, under the new system, this option will no longer be available. The FBR aims to identify non-filers through advanced technologies like machine learning and algorithms, ensuring that individuals who are evading taxes are brought into the system.
To enforce these measures, the government will implement an ordinance, which has already received approval from the Prime Minister. The FBR is working on the regulations and coordinating with the Ministry of Law to ensure smooth execution. The first phase of restrictions will focus on limiting major financial activities for non-filers. These include preventing them from purchasing property and vehicles, investing in mutual funds, opening traditional bank accounts, and traveling internationally for non-religious purposes.
The move comes in light of the fact that last year, only 25 billion rupees were collected in fees from non-filers. This amount is far less than the potential tax revenue that could have been generated. The FBR is also enhancing automation and workforce capabilities at major entry points across the country to strengthen the tax collection system.
