The Senate Standing Committee on Finance recently approved a proposal to enforce travel restrictions on individuals who have not filed their tax returns, marking a significant development in tax compliance measures.
Chaired by Senator Salim Mandviwala, the committee’s meeting underscored the gravity of the decision affecting non-filers. The Federal Board of Revenue (FBR) Chairman outlined that stringent actions will be taken against non-compliant taxpayers under the Income Tax General Order. Exceptions to the travel ban include individuals on pilgrimage for Hajj and Umrah, minors, students, and overseas Pakistanis holding the National Identity Card for Overseas Pakistanis (NICOP).
In addition to travel restrictions, non-filers will face the suspension of their mobile SIMs, as well as disconnection of electricity and gas connections. Senator Farooq H. Naik likened these measures to placing individuals on the exit control list, highlighting the severity of consequences for non-compliance.
Furthermore, non-filers are already subject to higher withholding tax rates, and their business operations are at risk of suspension. The FBR Chairman disclosed that the list of 500,000 non-filers includes individuals with an annual income exceeding Rs 2 million, who previously declared their income in tax returns.
Additionally, those who temporarily file tax returns solely to make high-value purchases like cars, plots, or houses will now face additional tax implications.
This move is part of broader efforts to enhance tax compliance and revenue collection in Pakistan, ensuring that all eligible taxpayers fulfill their fiscal responsibilities.
The decision underscores the government’s commitment to enforcing tax regulations effectively and addressing the issue of tax evasion comprehensively.
