In a significant move aimed at bolstering tax compliance, the Senate Standing Committee on Finance has approved a proposal that will bar non-filers from traveling abroad. This decision, taken under the chairmanship of Senator Salim Mandviwala, marks a major step in enforcing tax laws and ensuring accountability.
The Chairman of the Federal Board of Revenue (FBR) outlined the stringent measures to be implemented against non-filers under the Income Tax General Order. Notably, exemptions will be provided for individuals traveling for Hajj and Umrah, young children, students, and overseas Pakistanis holding the National Identity Card for Overseas Pakistanis (NICOP).
Broad Repercussions for Non-Filers
Beyond the travel restrictions, non-filers will also face severe penalties, including the disconnection of their mobile SIMs, electricity, and gas connections. Senator Farooq H. Naik underscored the gravity of these measures, likening them to being placed on the exit control list (ECL), which restricts individuals from leaving the country.
Naik also pointed out that non-filers are already subjected to higher withholding tax rates, and now their essential services and business operations could be at risk of suspension.
Targeting High-Income Evaders
The FBR Chairman disclosed that the list of non-filers includes around 500,000 individuals with an annual income exceeding Rs 2 million. These individuals had previously declared their income but failed to file subsequent tax returns. Additionally, those who temporarily file tax returns to acquire assets like cars, plots, or houses will face extra scrutiny and additional taxes.
This initiative is part of a broader effort to clamp down on tax evasion and increase the tax net. By implementing such stringent measures, the government aims to compel compliance and ensure that all eligible citizens contribute their fair share to the national exchequer.
Ensuring Compliance and Accountability
The approval of these measures by the Senate Standing Committee on Finance signifies a robust approach to dealing with tax non-compliance. It sends a clear message that the government is serious about tax enforcement and is willing to take tough steps to ensure compliance.
As these measures come into effect, non-filers will need to reassess their tax strategies to avoid the harsh penalties and disruptions that could follow. The government’s resolve to enforce these rules underscores the importance of adhering to tax laws and fulfilling civic duties.
