Islamabad, Sep 25: Federal Board of Revenue (FBR) Chairman Rashid Mahmood announced that the government has decided to completely abolish the concept of non-filers in income tax laws.
This move is part of a larger initiative to transform Pakistan’s cash economy into a documented economy and reduce the tax gap, which currently stands at Rs. 7.1 trillion.
During a presentation to leading business and trade groups, Mahmood explained that the category of non-filers would be eliminated, alongside banning the use of cheques for cash withdrawals beyond a certain threshold.
The government also plans to abolish Schedule 10 from the Income Tax Ordinance, which previously allowed non-filers to purchase assets.
The FBR’s transformation plan, presented by Mahmood and Member Inland Revenue Dr. Hamid Ateeq Sarwar, includes measures to enforce stricter compliance.
Non-filers will face disincentives, with facilities like bank accounts, investments, and property purchases being tied to the filing of tax returns. Additionally, digital systems will be implemented to track monetary transactions, and any discrepancies beyond set limits will be reported.
This reform aims to boost the tax-to-GDP ratio, ease the burden on current taxpayers, and discourage high tax rates that have driven businesses and skilled professionals out of Pakistan.
