THE announcement by the Federal Board of Revenue (FBR) to implement a series of restrictions targeting non-filers is a bold and necessary step towards enhancing tax compliance. For too long, individuals have exploited loopholes to evade their tax obligations, thereby depriving the state of crucial revenue.
By prohibiting non-filers from engaging in significant financial transactions such as purchasing property, buying vehicles and investing in mutual funds, the FBR is taking meaningful action to broaden the tax base. These measures will encourage eligible individuals to fulfill their responsibilities and contribute to the nation’s development. As FBR Chairman Rashid Mahmood Langrial pointed out, identifying and rectifying non-compliance is essential for our economic health. The integration of advanced technology, including machine learning and algorithms, to track non-filers represents a modern approach that aligns with global best practices. However, while these measures are aimed at encouraging compliance among taxpayers, it is imperative that they are implemented with caution. We must be vigilant to ensure that the innocent are not inadvertently caught in the net. For instance, many individuals, particularly housewives who may not have an independent source of income, could be adversely affected by restrictions that prevent them from opening bank accounts or engaging in everyday transactions. These individuals often rely on their spouses for financial support and the measures announced by the FBR should not affect them. Moreover, disconnecting mobile SIMs or imposing similar restrictions on individuals without income sources could lead to unintended hardships and social unrest. The FBR’s transformation plan must be executed thoughtfully, balancing the need for increased compliance with the realities of everyday life for many citizens. By engaging in consultations with community leaders and stakeholders, the FBR can refine its approach to ensure that it does not disproportionately impact vulnerable populations.
