ISLAMABAD: The Federal Board of Revenue (FBR) has warned that the non-filers of income tax returns may also face consequences of suspension of bank accounts and ban on local and foreign travelling through motorways and international air travel.
Muhammad Asif Chief Broadening the Tax Base (BTB) told media that the FBR has started a countrywide survey of business and commercial units for registration of non-filers.
According to him, the non-filers must register themselves with the nearest tax office to avoid the consequences like penalties & fines, disconnection of their utilities, suspension of bank accounts and in the extreme cases limiting their movement on motorways and airports.
FBR receives over 2.9m income tax returns
He said that the FBR through its field formations, spread over the entire country, is also in the process of conducting surveys and collecting information about businesses and commercial activities going on which shall be made available on this website in near future.
A document of the said official revealed that Pakistan has a population of 240 million. There is a very narrow tax base of around 5.2 million people who actually got themselves registered in tax system of the country and filed return of their income in the year 2022.
Pakistan confronts a formidable challenge in its fiscal landscape characterised by rampant tax evasion, an alarmingly low tax-to-GDP ratio, and an inadequately low number of tax filers. The country’s revenue generation suffers significantly, resulting in insufficient funding for critical public services and vital socioeconomic development initiatives.
He said that the pressing need to broaden the tax base looms large as a strategic imperative to fortify the nation’s financial foundation. Keeping in view the above, Federal Board of Revenue has launched a nationwide drive on broadening the tax base, targeting all eligible persons and those earning taxable income, to get registered with the tax system and file their return of income.
During the current year, it is estimated that 1.5 million new taxpayers shall be added to the regular taxpayers of the country.
Director BTB stated that the FBR, through third party data acquisition, has gathered a data of hundreds of thousands financial transactions of people who are still out of the tax net. This information is available on FBR’s website www.fbr.gov.pk under the title of “MALOMAAT”.
Anyone can get registered through a simple process and check a variety of transactions he/ she has undertaken during the last few years.
This information is periodically updated. This is also for the knowledge of all concerned that FBR is in possession of data of almost all those who are eligible to file return of income, it is just matter of a few weeks and days that all those committing non- compliance shall be brought to the tax net.
It is; therefore, in the interest of all to take advantage of the time, visit their nearest tax office and get registered to avoid the consequences like penalties and fines, disconnection of their utilities, suspension of bank accounts and in the extreme cases limiting their movement on motorways and abroad, Muhammad Asif added.
Copyright Business Recorder, 2023