FBR to Impose 15 Restrictions on Non-Payers After Abolishing Non-Filer Category

The Federal Board of Revenue (FBR) has announced its decision to abolish the non-filer category and introduce 15 specific restrictions on individuals who do not file tax returns. This move aims to enhance tax compliance and expand the tax base, as revealed by FBR Chairman Rashid Mahmood Langrial. Initially, five key restrictions will be imposed, including bans on property purchases, vehicle purchases, international travel (excluding religious journeys), opening current accounts, and investing in mutual funds.

The government is eliminating the non-filer category, which means that individuals who previously avoided taxes by paying a minor fee on certain transactions will no longer have this option. FBR Chairman Langrial criticized the concept of non-filers, stating that such classifications do not exist worldwide and should be eliminated to focus on differentiating between compliant and non-compliant taxpayers.

An official source confirmed to The News that the restrictions will be enforced through an ordinance, and FBR is already working on the rules with the involvement of the Ministry of Law. The initial focus will be on five key areas, but the FBR’s comprehensive plan includes a total of 15 activities that will be restricted for tax non-payers.

FBR plans to identify non-filers using advanced machine learning and algorithms, highlighting the shift towards more sophisticated compliance measures. This decision is part of the FBR’s transformative agenda, which has received approval from the Prime Minister.