Daily Times

The Federal Board of Revenue (FBR) is set to crack down on potential under-filers, with significant repercussions for those failing to comply, warned FBR Chairman Rashid Mehmood Langrial. Speaking on Geo News’ program Aaj Shahzeb Khanzada Kay Sath, Langrial emphasized that individuals making major financial transactions will be prohibited from purchasing property, vehicles, and using bank accounts unless they are tax-compliant.

With the October 14 deadline for tax returns approaching, Langrial stated that this will be the final date for filings. Afterward, the government plans to eliminate the non-filer category entirely, barring them from key transactions such as buying properties worth over Rs10 million or new vehicles. Other possible restrictions include air travel bans and account freezes.

Langrial further explained that while ordinary citizens will still be able to purchase plots and used vehicles, anyone engaging in large transactions will face restrictions if they are not paying their due taxes. He highlighted that Pakistan has millions of households with high living standards, yet many are under-filing or evading taxes. A comparison of companies in various sectors, such as cement and textiles, revealed wide discrepancies in tax payments, suggesting widespread evasion.

In response to these issues, the FBR is working on enhancing its audit capacity and reforming the tax system. However, Langrial noted that this will take time, as procedural and legislative changes need several months for implementation. He also pointed out that smuggling is another major challenge, along with a tax-to-GDP ratio that the FBR aims to increase to 15%, with provincial contributions potentially raising the overall rate to 18%.