Legal actions against non-filers to commence this November
11-10-2024
Islamabad: The Federal Board of Revenue (FBR) Chairman Rashid Langriyal announced that large-scale actions against non-filers of income tax will commence in November this year, with no further extensions for tax return submissions. This was reported by national news sources on October 10. Read: FBR approves to suspend sim cards of 1.8 million non filers During a media briefing, Langriyal revealed that over 4 million income tax returns have been filed so far, a significant increase from last year’s figures. However, the FBR remains resolute in taking action against tax evaders. The Prime Minister’s directive is clear: non-filers will face legal consequences, and the FBR holds comprehensive data on those who have not complied. The deadline for filing tax returns is October 14, with no plans for further extensions. Non-filers have been warned of serious repercussions, including bans on property and vehicle purchases, restrictions on foreign travel, suspension of mobile SIM cards, and disconnection of electricity services. Read: ‘Non-filers to face restrictions on purchasing property, opening bank account’ Additionally, the FBR plans to abolish the non-filers category from Pakistan’s tax laws and gradually ban their participation in 15 financial activities. Supported by major industrialists, this decision aims to increase revenue from compliant taxpayers and penalize tax evaders. Under the new tax plan, non-filers will be restricted from making large cash withdrawals via cheques, purchasing property, vehicles, and making certain investments. Properties declared below market value may also be acquired by the government. FBR data shows that while 94% of middle-income taxpayers are compliant, only 29% of the wealthiest individuals fully declare their incomes. Read: Non-filers denied property purchases under FBR’s new tax strategy Business leaders have endorsed the plan but stressed the importance of sustainable implementation, suggesting that more auditors be deployed to scrutinise non-filers effectively. The FBR urges taxpayers to meet the deadline to avoid legal actions as the government intensifies its efforts to ensure compliance.