ByIslamabad, Pakistan: The Federal Board of Revenue (FBR) is drafting a new law to eliminate the categories of “late-filers” and “non-filers” from the Income Tax Ordinance 2001.
The proposed law aims to simplify the tax filing process and reduce the burden on taxpayers. It will introduce a new system for declaring sources of income and verifying financial transactions.
Under the new law, individuals will be required to declare their sources of income for transactions exceeding certain thresholds. Family members of taxpayers will also be included in this declaration process.
The FBR plans to introduce a mobile app for individuals to declare their sources of income and avoid the need for physical verification. Business Recorder
The FBR will also establish disincentives for non-compliant taxpayers, such as restricting access to financial services. The FBR will share information with banks about individuals’ declared incomes to ensure compliance.
The proposed law is expected to improve tax compliance and increase revenue collection. It is part of the FBR’s efforts to modernize the tax system and make it more efficient for taxpayers.
