The Federal Board of Revenue (FBR) issued a warning regarding potential penalties for individuals who fail to file income tax returns, including the suspension of bank accounts and restrictions on domestic and international travel.
Muhammad Asif, Chief of Broadening Tax Base (BTB), mentioned that the FBR initiated a nationwide survey of businesses and commercial entities to register non-filers.
As per Asif, non-filers must register at their nearest tax office to evade penalties such as fines, utility disconnections, bank account suspensions, and in severe cases, restrictions on travel within the country and abroad via motorways and airports.
The official document highlighted Pakistan's population of 240 million, with only about 5.2 million individuals registered in the tax system and filing their income returns in 2022. The country faces a critical challenge due to widespread tax evasion, resulting in a low tax-to-GDP ratio and a limited number of tax filers. This hampers revenue generation, impacting essential public services and socio-economic development initiatives.
The FBR launched a national drive to broaden the tax base, aiming to register eligible individuals earning taxable income. They anticipate adding 1.5 million new taxpayers this year. The FBR collected data on financial transactions through third-party sources, available on their website under "MALOMAAT," intending to bring non-compliant individuals into the tax net.
Muhammad Asif emphasized the urgency for all eligible individuals to register with the tax office promptly to avoid penalties, emphasizing the availability of data to identify non-compliant taxpayers.
