Today marks the final opportunity for the public to submit their tax returns for the fiscal year 2023-2024, following the Federal Board of Revenue’s (FBR) deadline extension.
The FBR announced an extension until October 14, following numerous requests from the public, trade organizations, and tax bar associations.
Last week, FBR Chairman Rashid Mehmood Langrial highlighted the consequences for those failing to meet their tax obligations. “Significant transaction makers who fail to file will face severe restrictions on purchasing properties and vehicles and operating bank accounts,” Langrial stated.
He emphasized that October 14 is the final deadline. After that, the government plans to eliminate the non-filer category, thereby restricting them from major financial activities, including potentially banning air travel.
Read: FBR Extends Income Tax Return Deadline to October 14
Previously, the FBR declared measures aimed at non-filers to promote tax compliance and expand the tax base. These measures restrict non-filers from purchasing property, buying vehicles, investing in mutual funds, opening current accounts, and travelling internationally, except for religious purposes.
The government intends to abolish the non-filer status, which previously allowed individuals to bypass tax on major transactions by paying a nominal fee.
Langrial also highlighted the critical issue of under-filing within Pakistan’s tax system and mentioned efforts to enhance tax authorities’ auditing capabilities.
He suggested that with increased enforcement, Pakistan’s tax-to-GDP ratio, including petroleum levies, could reach 15%, while provincial contributions could add another 3% to GDP, potentially elevating the overall rate to 18%.
