FBR Chief: Non-Filers to Face Utility and SIM Disconnections

The Federal Board of Revenue (FBR) in Pakistan, led by chairman Zubair Tiwana, has announced several measures aimed at increasing tax revenues for the 2024-25 budget. Key among these measures is the suspension of electricity and gas connections, along with SIM cards, for individuals who fail to file tax returns. This initiative is part of broader efforts to ensure compliance with tax regulations and improve the country's financial health.

The Senate's Standing Committee on Finance and Revenue has approved additional measures targeting non-filers, including a foreign travel ban. Exemptions to this travel ban will be provided for nationals undertaking Hajj, Umrah, children, students, and holders of the National Identity Card for Overseas Pakistanis (NICOP). The non-filer list currently includes 500,000 individuals with annual incomes exceeding 2 million rupees.

Further, the committee has sanctioned a higher withholding tax rate for non-filers, including a 75% withholding tax on cellular and internet bills. Temporary filers, who only file taxes to make specific purchases such as vehicles, plots, or residences, will also face additional taxes. Other approved measures include reducing the salary slab and increasing tax rates, along with an 18% general sales tax on processed and packaged food items like flour, pulses, rice, sugar, and spices starting from the next financial year.