The Federal Board of Revenue (FBR) has addressed confusion surrounding tax filers and non-filers, especially after the recent budget announcement. Here’s a breakdown of the key points:
- Number of Non-Filers: FBR clarifies that only about 2.5 million individuals are considered non-filers out of Pakistan’s 250 million population.
- Who are Non-Filers?: Non-filers are those with a taxable income who haven’t filed their income tax returns.
- Who Doesn’t Need to Worry?: Household women and students are not considered non-filers.
- Stricter Measures for Non-Filers: The FBR plans to collaborate with the Federal Investigation Agency (FIA) to restrict non-filers from international travel.
Budget Proposals for Non-Filers:
The 2024-25 budget proposes stricter measures to encourage tax filing:
- Increased Mobile Phone Tax: Non-filers might face a 75% tax on mobile phone calls.
- Electric Vehicle Tax: The tax exemption on electric vehicles exceeding $50,000 might be lifted.
- Additional Taxes: The government may introduce additional taxes specifically targeting non-filers to incentivize them to enter the tax net.
FBR’s Enforcement Actions:
The FBR has already initiated measures against non-filers:
- Phase 1: SIM card blocking for non-filers.
- Potential Phase 2: Disconnection of electricity and gas connections for non-filers.
New “Late Filers” Category:
The budget introduces a “late filers” category for individuals who miss tax filing deadlines. Initially, this will apply only to the property sector to identify those who file returns solely to meet property buying/selling requirements and then neglect future filings.
What You Should Do:
- Check Filing Status: If you’re unsure about your tax filing status, reach out to the FBR for clarification.
- Meet Filing Deadlines: Ensure you file your tax returns on time to avoid penalties and potential restrictions.
- Consult a Tax professional: For those with complex tax situations, consulting a tax advisor is recommended for personalized guidance.
By understanding the FBR’s stance and the new budget measures, taxpayers can make informed decisions regarding their tax obligations.
