The Federal Board of Revenue (FBR) has alerted individuals about potential repercussions for failing to file their income tax returns, emphasizing the possibility of bank account suspensions and travel restrictions, both domestically and internationally via motorways and air routes.
In an effort to expand the taxpayer base, Muhammad Asif, the Chief of Broadening the Tax Base (BTB), stressed the urgency for non-filers to register with their nearest tax office. This step is crucial to avoid facing penalties, fines, utility disconnections, bank account suspensions, and in severe cases, limitations on travel within and outside the country.
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The BTB Chief highlighted the ongoing efforts of the FBR, conducting extensive surveys and collecting data on businesses and commercial activities throughout the country. This data will soon be accessible on their website.
Despite Pakistan’s population reaching 240 million, only approximately 5.2 million individuals were registered in the tax system and filed income returns in 2022. This glaring gap in the tax base poses a significant challenge, fostering widespread tax evasion and maintaining a low tax-to-GDP ratio. Consequently, Pakistan faces financial strain, hindering adequate funding for vital public services and crucial socio-economic development initiatives.
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Recognizing the urgency of broadening the tax base for a more robust financial structure, the FBR has launched a nationwide campaign to enroll eligible individuals and those earning taxable income, urging them to file their returns.
Using data acquired from various sources, the FBR has compiled financial transaction records of hundreds of thousands of individuals outside the tax net. This information, accessible on their website, aims to encourage registration and allows users to review their past transactions. The regularly updated data includes nearly all eligible individuals required to file income tax returns.
The document underlined the necessity for prompt action, urging individuals to visit their nearest tax office for registration to evade potential consequences, such as penalties, utility disconnections, bank account suspensions, and, in extreme cases, travel restrictions within Pakistan and abroad.
