As Pakistan aims to boost its tax revenues in the 2024-25 budget, the Federal Board of Revenue (FBR) chief has announced that electricity and gas connections of non-filers will be suspended, along with their SIM cards.
In a recent development, the Senate’s Standing Committee on Finance and Revenue approved the proposal to impose a foreign travel ban on non-filers. The decisions were made during a session chaired by Saleem Mandviwalla.
FBR Chairman Zubair Tiwana informed the Senate committee that non-filers would face actions under the Income Tax General Order (ITGO). However, exemptions would be provided for nationals undertaking Hajj, Umrah, children, students, and holders of National Identity Card for Overseas Pakistanis (NICOP).
Non-filers will face the suspension of their SIM cards, electricity and gas connections, and potential business shutdowns. Additionally, a higher withholding tax rate has been approved for non-filers. The list includes 500,000 people with annual incomes exceeding 2 million rupees.
Temporary filers will also have to pay additional taxes on purchases of vehicles, plots, and residences. The Senate committee approved proposals to reduce the salary slab and increase tax rates, including a 75% withholding tax on cellular and internet bills for non-filers.
Earlier this week, Finance Minister Muhammad Aurangzeb emphasized the need to widen the tax net, stating that the country cannot function with a 9.5% tax-to-GDP ratio. He stressed the importance of bringing everyone into the tax net and abolishing the non-filer category.
His statement came shortly after presenting the federal budget for the fiscal year 2024-25 in the National Assembly, with a total outlay of Rs18.9 trillion.
