Tax authorities have collected Rs85 billion in six months on account of cash withdrawals and electricity consumption by non-filers of income tax returns, indicating that law violators are mostly concentrated in the two biggest urban centres – Karachi and Lahore. Out of the Rs85 billion collected from non-filers under just two heads, nearly 60% was pooled from Karachi and Lahore.
These urbanised cities are the biggest in Pakistan, and the Federal Board of Revenue also has the maximum presence, with eight out of 25 field offices based in Karachi and Lahore.
The Pakistan Democratic Movement government imposed a 0.6% tax on over Rs50,000 cash withdrawals by non-filers of income tax returns.
Similarly, domestic electricity consumption of over Rs25,000 per month by non-filers of income tax returns also attracts a 7.5% withholding tax. Under these two taxes, the FBR pooled Rs85 billion from July through December of this fiscal year – up by nearly half, or Rs27.5 billion, according to the data.
