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- Overseas Pakistanis, students and pilgrims will be exempted.
- Foreign travel restrictions similar to ECL: Farooq H Naek.
- The agency approved 75% WTH on the internet bills of non-filers.
ISLAMABAD: As Pakistan looks to increase tax revenues in the 2024-25 budget, the Federal Board of Revenue (FBR) chief has said that electricity and gas connections will be suspended along with SIM cards for those who have not filed returns.
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-declarers. In a Senate meeting chaired by Salim Mandviwala, a slew of decisions were taken.
FBR Chairman Zubair Tiwana told the Upper House that those who fail to file tax returns will face penalties under the Income Tax General Order (ITGO), however, nationals performing Hajj, Umrah, children, students and National Identity Card of Overseas Pakistanis (NICOP) holders will be exempted.
He elaborated that undeclared users will face suspension of SIM cards, electricity and gas connections and their businesses may also be shut down.
During the meeting, Pakistan Peoples Party (PPP) Senator Farooq H Naek stressed that travel restrictions on undeclared persons should be implemented in the same manner as those in the Exit Control List (ECL) category.
Tiwana further said that a higher withholding tax rate has been approved for non-filers. He added that the list of non-filers includes 500,000 people with an annual income of more than $2 million.
He added that the individuals on the list had disclosed their income statements in the past in their tax returns. Senior officials of the Federal Board of Revenue said that temporary taxpayers will also have to pay additional taxes when they buy vehicles, land and houses.
The Senate also approved a proposal to lower wage standards and raise taxes, approving a 75% withholding tax on non-taxpayers’ cell phone and internet bills.
Earlier this week, Finance Minister Mohammad Aurangzeb stressed the need to widen the tax net, saying the country cannot operate with a 9.5% tax-to-GDP ratio.
“We have to bring everyone into the tax net. Our aim is to bring everyone into the list of active taxpayers,” the finance minister said on Geo News show Aaj Shahzeb Khanzada Kay Sath on Wednesday.
“We must abolish the category of non-declarants in the country,” he added.
His remarks came just hours after he unveiled the Union Budget for 2024-25 in the National Assembly with a total outlay of Rs 1.89 trillion.
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