Islamabad: The Federal Board of Revenue (FBR) has announced a strategy to incorporate 2.8 million untaxed households into the tax net, expecting to enhance the national economy by PKR 1.6 trillion.
According to Zameen.Com, FBR spokesperson Bakhtiar Muhammad revealed that of the 3.5 million households identified as tax-liable, 2.8 million remain non-compliant. The spokesperson outlined the government’s robust plan to improve the tax-to-GDP ratio, which has already led to a substantial increase in tax filers and revenue collections for the fiscal year 2024-25. “Tax return filings have surged by 105%, jumping from 1.8 million last year to 3.7 million this year, thanks to the government’s prudent policies,” Bakhtiar noted.
The FBR is implementing 15 new restrictions on non-filers that will take effect over the next few months through a finance bill. These restrictions include prohibitions on purchasing property, buying vehicles, international travel, and opening bank current accounts for those who do not file taxes.
Additionally, while taxpayers will continue to enjoy lower bank transaction fees, non-filers will face higher charges. Bakhtiar stated that the FBR is moving towards eliminating the non-filer category, thereby making tax filing compulsory. He elaborated that the FBR plans to restrict both the investment and expenditure avenues for non-filers through an automated system integrating payment and invoicing mechanisms.
Moreover, Bakhtiar highlighted the FBR’s successful revenue collection in September 2024, which exceeded its target by collecting PKR 1.106 trillion. He also mentioned ongoing digitization efforts in customs processes, including the examination and appraisal phases.
FBR Chairman Rashid Mahmood Langrial has engaged with the World Bank to discuss advancements in the FBR Transformation Plan under the Pakistan Raises Revenue Project. This initiative focuses on streamlining tax policy, pushing digitization, enhancing workforce capacity, combating smuggling, and overall tax administration reforms.
In alignment with these digital advancements, the FBR has also restructured its senior management. Recent changes include the re-designation of the Member (Public Relations) to Member (Taxpayers Services), and the Member (Accounting) to Member (Organizational Audit). The newly created role of Director General (Information Technology and Digital Transformation) consolidates the former positions of Member (Information Technology) and Member (Digital Initiatives) to foster greater efficiency in the FBR’s digital transformation efforts.