Pakistan Eliminates “Non-Filer” Status, Enforcing Penalties

Finance Minister Senator Mohammad Aurangzeb has declared the government’s intention to abolish the term “non-filers” and introduce stringent penalties for those who do not report their income. These measures will significantly restrict their everyday activities.

In a Thursday interview with VOA, Aurangzeb revealed that the government possesses detailed data on non-filers, including their lifestyle choices, vehicle ownership, and international travel habits. “We have reached a stage where leniency is no longer viable. Those concealing their income and avoiding taxes will face limitations on accessing numerous vital services,” he stated.

Aurangzeb outlined intentions to lighten the tax load on salaried individuals and broaden the tax base to encompass retail, wholesale, agriculture, and real estate sectors. “Our goal is to alleviate the burden on the working class while ensuring that sectors previously exempt from tax start contributing fairly,” he explained.

Read: Pakistan Set to Secure Final IMF Bailout Package on September 25 : Finance Minister

Addressing the IMF’s concerns about debt repayment, the minister mentioned that the government has put forward a robust economic reform plan. “Implementing these reforms was imperative, and we are committed to integrating all untaxed groups into the system,” he said.

Despite a 29% rise in tax revenues last year, Aurangzeb noted that Pakistan’s tax-to-GDP ratio still stands at 9%—too low to secure economic stability. He acknowledged financial support from China and Saudi Arabia, which helped secure a $7 billion IMF loan, but emphasized the need for comprehensive reforms. “For Pakistan to escape the cycle of IMF programs, we must implement significant reforms to achieve long-term economic stability,” he added.