The government of Pakistan has announced plans to eliminate the non-filer category from tax laws, introducing a range of restrictions for individuals who do not submit tax returns.
Confirming the news in a conversation with a private channel, Federal Board of Revenue (FBR) spokesperson Bakhtiar Muhammad stated that non-filers will no longer be allowed to purchase vehicles by paying additional taxes.
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Key restrictions for non-filers include:
- Ban on Non-Religious Travel: Non-filers will be prohibited from traveling for non-religious purposes.
- Cash Withdrawal Limit: Annual cash withdrawals will be capped at Rs30 million.
- Asset Purchase Ban: Non-filers will be barred from purchasing properties or vehicles.
- Investment Restrictions: They will be prohibited from investing in the stock market or mutual funds.
- Current Account Limitations: Opening current bank accounts will be restricted.
- Higher Withholding Taxes: Non-filers will face increased withholding tax rates.
- Transaction and Cheque Use Restrictions: Non-filers will be subjected to limitations on transactions, including bans on certain cheque usage.
- Business and Investment Constraints: Business activities will be restricted, and tax exemptions will no longer be available.
Enhanced scrutiny and audits will also be implemented for non-filers. FBR clarified that individuals earning Rs50,000 or more per month and failing to submit tax returns fall into this category.
