The Pakistani government is planning to eliminate the “non-filers” category from tax laws and implement a phased ban on 15 activities for non-compliant citizens, a move supported by the country’s top industrialists.
The aim is to boost revenue from current taxpayers and penalize those who evade compliance.
According to Federal Board of Revenue (FBR) data, while 94% of middle-income taxpayers fulfill their tax obligations, only 29% of the wealthiest 1% do so.
This disparity has prompted the government to introduce stricter measures for both filers and non-filers. The FBR’s new approach will eliminate the non-filers category, restrict certain transactions, and limit cheque-based cash withdrawals above a specified threshold.
Leading figures in the industrial and corporate sectors have endorsed the government’s initiative. Key proposals include prohibiting non-filers from purchasing property, vehicles, and making investments.
Additionally, income tax return filers with earnings exceeding Rs10 million will be required to disclose their income sources before making any major purchases. The FBR stressed the need for these actions to bridge the tax gap and enforce compliance.
While the business community largely supports the reforms, they also highlighted concerns about the need for effective implementation and strong political will to ensure these regulations are enforced.