Federal Board of Revenue cracks down hard on non-filers

The Federal Board of Revenue (FBR) cracks down hard on non-filers and sends letters to 800,000 individuals who have taxable income but have not filed tax returns.

According to sources, this proactive move comes after a briefing to a visiting technical team of the International Monetary Fund (IMF). It has the plan to expand the tax net and boost government revenues has begun.

The Federal Board of Revenue (FBR) has launched a major crackdown on tax evaders, issuing notices to 800,000 individuals identified as having taxable income but failing to file tax returns.

For more: https://t.co/ew6dyOHiIU #etribune #news #latest pic.twitter.com/IC2O7hvjDe
— The Express Tribune (@etribune) December 6, 2023

Federal Board of Revenue cracks down hard on non-filers

FBR has collected information on nearly 1.5 million people through data integration with the National Database and Registration Authority (NADRA). According to FBR sources, this data is being cross-matched to identify individuals. Those who have taxable income but are not complying with tax requirements.

FBR briefed the IMF’s technical team on this program and the efforts being made to boost tax collection and increase the tax-to-GDP ratio during its recent visit to Pakistan.

Federal Board of Revenue cracks down hard on non-filers — *FBR briefs IMF team on tax collection boost*

Authorities have established 145 district tax offices (DTOs) across Pakistan to improve tax enforcement. These DTOs, in partnership with NADRA, are actively looking for anyone who is dodging taxes despite having taxable income.

District Tax Officers (DTOs) of FBR get extensive powers to widen the tax base to bring 1.5 to 2 million new taxpayers by June 2024!😑

Find all the details at TabloidPK! ⤵️https://t.co/sOBL7hH0kc #Azerbaijan #KhadijahShah #SaimAyub #PSL9 #WorldcupFinal #AnilaAli #FBR #pakistan pic.twitter.com/96lYNfV2k0
— TabloidPK (@tabloidpk) November 18, 2023

Click here to read the updates on DGIP suspends issuance of 100-page passport

The FBR has a multifaceted strategy for preventing tax avoidance. They are issuing notices to non-filers at first. If they do not comply, the FBR has the authority to suspend their energy, networks, and gas connections. FBR can only reverse these measures by issuing a no-objection certificate (NOC).

FBR also updated the IMF technical team on measures to change tax policy in its partnership with FBR to extend the tax net and produce additional revenue.

Furthermore, the FBR is constructing the infrastructure required to implement a new program for retailers. This initiative has a motive to bring an extra 1 to 1.5 million people into the tax net. It will bring the total number of taxpayers to 6 million by June 2024.