ISLAMABAD — The government of Pakistan is taking stern measures to increase tax revenue and now non-filers will face new restrictions on banking and property transfers.
The new directives come in a meeting of Prime Minister Shehbaz Sharif who pushed for stringent measures, which include banning all banking and financial transactions for individuals who have not filed tax returns.
In this regard, the apex tax collecting authority FBR was given nod to implement Indigenous Transformation as the government planned to cut cash currency circulation.
The incumbent authorities projected budget target of Rs12.970 trillion for the current fiscal year and the government planned to end loopholes associated with under-declared incomes and tax payments.
Under new restrictions, non-filers will not be able to buy vehicles, real estate, or financial instruments. For those declaring incomes over 1 crore will get full access.
As of September 2024, income tax returns are low, with only 25pc of wholesalers and 8pc of retailers compliant. To improve documentation, the strategy involves disallowing sales input from unregistered entities, using digital invoicing for tracking, issuing compliance notices, and imposing strict fines. Further measures could include freezing bank accounts and limiting utility services for non-compliance.
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