Islamabad, Oct 7: The Federal Board of Revenue (FBR) is set to include approximately 2.8 million potential households in the tax net, aiming to contribute around Rs1.6 trillion to the national economy.
According to Bakhtiar Muhammad, FBR spokesperson, while there are around 3.5 million top households liable for taxes, a significant 2.8 million are currently not paying.
Initiatives to Enhance Tax Compliance
The incumbent government has initiated a comprehensive plan to increase the tax-to-GDP ratio, resulting in a notable rise in both the number of tax filers and tax collection for the fiscal year 2024-25.
- Increase in Tax Filers: The number of tax returns filed has surged by 105%, increasing from 1.8 million last year to 3.7 million this year, thanks to prudent government policies.
- Restrictions on Non-Filers: The FBR plans to impose 15 restrictions on non-filers within the next two to three months via a finance bill. This move aims to transition non-filers into mandatory tax filers.
Benefits for Taxpayers
Bakhtiar emphasized that taxpayers benefit from reduced bank transaction rates, while non-filers face additional charges. The FBR is determined to eliminate the non-filer category entirely, which will compel individuals to file tax returns.
Automation and Digitization Efforts
The FBR is advancing its efforts to digitize the examination and appraisal processes in customs, enhancing efficiency and compliance. The integration of payment and invoicing systems aims to make it increasingly difficult for non-filers to conduct transactions.
The reforms include, tax policy reforms, digitalization initiatives, capacity building of HR, anti-smuggling initiatives and broad-based tax administration reforms.
