As Pakistan increases its tax revenue in 2024-25, the chairman of the Federal Board of Revenue (FBR) has announced that unfiltered electricity and gas connections will be suspended along with SIM.
In the latest development, the Senate Standing Committee on Finance and Revenue on Saturday approved a proposal to impose a foreign travel ban on non-filterers. Several resolutions were passed in the current Senate session chaired by Saleem Mandviwalla.
FBR Chairman Zubair Tiwana informed the members of the upper house that action will be taken against those who fail to file their tax returns under the General Income Tax Ordinance (ITGO), but will grant exemptions for Hajj, Umrah, children, students and citizens. Identity Card for Overseas Pakistanis (NICOP).
He said, non-filter will lead to suspension of SIM cards, suspension of electricity and gas connections and closure of businesses.
During the session, Pakistan People’s Party (PPP) Senator Farooq H Naek said that the travel ban for non-filters should be enforced in the same way as those under the Exit Control List (ECL) category.
In addition, Tiwana confirmed the high tax for non-filter. He added that there are 500,000 people on the non-filing list with an annual income of more than 2 million.
He said the registered persons had previously disclosed their income statements and tax returns. A senior FBR official said that temporary screeners will have to pay additional tax on purchase of vehicles, houses and real estate.
In addition, the Senate Senate approved proposals to cut wages and raise taxes, and approved a 75% tax on cell phone and internet bills for non-filterers.
Earlier this week, Finance Minister Muhammad Aurangzeb said there was a need to widen the tax net, saying the country could not afford a tax-to-GDP ratio of 9.5%.
“We need to eliminate the non-filter category in the country,” he said.
The announcement came hours after the National Assembly announced the federal budget for the 2024-25 fiscal year, totaling $18 trillion.
