Islamabad: The Federal Board of Revenue (FBR) issued a warning of imminent measures to freeze bank accounts. Also, impose travel restrictions on individuals who have neglected to file their tax returns. In a bid to fortify adherence to tax regulations, the FBR’s announcement sent shockwaves through the financial landscape.
To avert the looming sanctions, non-compliant individuals are urged to take swift action by registering at the nearest tax office. Chief Muhammad Asif, spearheading the Broadening of Tax Base (BTB), underscored the gravity of filing tax returns as a shield against potential utility service disruptions, fines, and the recently unveiled penalties by the FBR.
Reports suggest a sweeping nationwide initiative is underway to rope in eligible individuals. And those with taxable income, amplifying the tax base. FBR records from 2022 revealed that out of 240 million people, only 5.2 million were in the tax net.
Pakistan faces formidable challenges, including widespread tax evasion, a paucity of tax revenue crucial for socio-economic development, and a disproportionately low tax-to-GDP ratio. In response, the FBR has meticulously compiled financial transaction data on hundreds of thousands of individuals still operating outside the tax radar.
With a target of introducing 1.5 million new taxpayers into the fold this year, the BTB is unleashing stringent measures. FBR strongly urges individuals to seize the opportunity, promptly registering at the nearest tax office to forestall severe penalties.