The Senate Standing Committee on Finance, chaired by Salim Mandviwala, proposed a sweeping ban on purchases of cars, houses, and foreign travel for non-filers, citing the country’s unsustainable 9.5% tax-to-GDP ratio.
Finance Minister Muhammad Aurangzeb highlighted the need for higher taxes on larger incomes to bolster the tax base. He announced plans for comprehensive tax digitization, emphasizing that wealthier sectors will face increased taxation.
Aurangzeb also advocated eliminating the category of non-filers, restricting their purchases to essential religious travels like Umrah and Hajj.
Senator Mohsin Aziz recommended extending these restrictions to anyone lacking a National Tax Number (NTN), noting that non-filers constitute 80% of major industry buyers. Senator Faisal Vawda supported this, insisting on filing requirements for all religious travels.
Concerns were raised about the export sector’s challenges under the standard tax regime, with Senator Anusha Rehman calling for lower taxes on mobile phones.
In addition, Aurangzeb disclosed plans to incorporate 31,000 retailers from six cities into the tax system starting in July. He alerted members that the national debt’s interest payments now surpass the nation’s tax income.
