Government to Abolish Non-Filer Category and Impose Strict Restrictions

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.

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.