Government to Eliminate Non-Filers Category, Imposes 15 Restrictions on Non-Taxpayers

In a significant move to enhance tax compliance and broaden the tax base, the government has decided to abolish the category of non-filers and impose 15 restrictions on individuals who fail to pay taxes.

According to a report by Moqar Qaumi newspaper, the Federal Board of Revenue (FBR) has announced these measures as part of a larger effort to crack down on tax evasion and enforce stricter compliance. These restrictions will apply to various activities, including:

• Purchasing property
• Buying vehicles
• Investing in mutual funds
• Opening current accounts
• Engaging in international travel (excluding religious travel)

Targeting Non-Taxpayers

FBR Chairman Rashid Mehmood Langriyal emphasized that the non-filer category is being abolished as part of the transformation plan approved by the Prime Minister. Instead of classifying individuals as filers or non-filers, the focus will be on identifying tax-compliant and non-compliant individuals through the use of machine learning and advanced algorithms.

Langriyal also criticized the concept of non-filers, stating that such classifications are not found globally and hinder effective tax collection. The 15 new restrictions will initially focus on five key areas to encourage tax filing and penalize those who evade their responsibilities.

Implications of the New Restrictions

These reforms are expected to encourage non-taxpayers to become compliant with the tax system. By targeting key financial activities and lifestyle choices, the government hopes to pressure individuals and businesses to file their returns and contribute to the national exchequer.

This decision marks a step toward creating a more equitable and efficient tax system, as Pakistan continues its efforts to increase revenue and improve fiscal management.