FBR to bar non-filers from traveling outside the country

ISLAMABAD: The Federal Board of Revenue (FBR) is set to launch a major initiative targeting tax non-compliance, including barring the non-filers from being able to leave the country.

The initiative is part of a comprehensive plan aimed at improving the tax collection and ensuring that all sectors contributed appropriately to the national treasury.

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According to sources, the initiative will focus on ten key sectors, including retail, wholesale, transportation, real estate, construction, healthcare and education.

Businesses and citizens that have registered with tax authorities (filers) and have consistently submitted their tax returns contrast with the non-filers that have either not registered or neglected to file their tax returns.

This results in substantial revenue shortfalls for the government, and the imbalance also creates an unfair environment where compliant taxpayers shoulder the financial burden of public services while the non-filers evade their obligation

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The FBR’s approach is multi-dimensional, which involves posing restrictions on non-filers, particularly regarding their ability to travel internationally.

This step is aimed at discovering tax evasion and paying tax before leaving the country.

The revenue department is also preparing to implement measures that could lead to the suspension of mobile SIM cards, as well as electricity and gas serveries for those identified as non-filers.

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The FBR is also mulling a prohibition on buying and selling of property and vehicles for non-filers. The restriction aimed to curtail in the financial activates of non-taxpayers.

The revenue board stated that it maintains a “thorough record” citizens transactions, which will assist in identifying tax evasion and ensuring compliance.