FBR Warns Non-Filers With Travel Bans and Bank Account Suspensions

The Federal Board of Revenue (FBR) has warned that the non-filers of income tax returns are expected to face serious consequences of suspending bank accounts and a ban on local and foreign traveling through motorways and international air travel.

Muhammad Asif, Chief of Broadening the Tax Base (BTB), issued a document on Broadening the Tax Base. “The non-filers must register themselves with the nearest tax office to avoid the consequences like penalties & fines, disconnection of their utilities, suspension of bank accounts and in the extreme cases limiting their movement on Motorways and abroad,” he said.

FBR Chief Broadening the Tax Base said that the FBR through its field formations spread over the entire country is also conducting surveys and collecting information about businesses and commercial activities, which shall be made available on this website shortly.

A document by the said official revealed that Pakistan has a population of  240 million people. There is a very narrow tax base of around 5.2 million people who got themselves registered in the tax system of the country and filed returns of their income in the year 2022. Pakistan confronts a formidable challenge in its fiscal landscape characterized by rampant tax evasion, an alarmingly low tax-to-GDP ratio, and an inadequately low number of tax filers. The country’s revenue generation suffers significantly, resulting in insufficient funding for critical public services and vital socio-economic development initiatives.

He said that the pressing need to broaden the tax base looms large as a strategic imperative to fortify the nation’s financial foundation. Keeping in view the above, the Federal Board of Revenue has launched a national vide drive on Broadening the Tax Base, targeting all eligible persons and those earning taxable income, to get registered with the tax system and file their return of income.

During the current year, it is estimated that 1.5 million new taxpayers shall be added to the regular taxpayers of the country.

Director BTB stated that the FBR, through third-party data acquisition has gathered data of hundreds of thousands of financial transactions of people who are still out of the tax net. This information is available on FBR’s website, www.fbr.gov.pk, under “MALOMAAT”.

Anyone can get registered through a simple process and check a variety of transactions he/she has undertaken during the last few years. This information is periodically updated. This is also for the knowledge of all concerned that FBR has data of almost all those who are eligible to file a return of income, it is just a matter of a few weeks and days before all those committing non-compliance shall be brought to tax net.

It is therefore in the interest of all that take advantage of the time, visit their nearest Tax office, and get registered to avoid the consequences like penalties & fines, disconnection of their utilities, suspension of bank accounts, and in the extreme cases limiting their movement on motorways and abroad, the document added.