The government has granted the FBR the authority to forcibly register non-filers, as reported by national media on Wednesday.
According to details, under the approved Finance Bill, which aims to implement the federal government’s financial proposals from July 1, 2025, and to amend certain laws, strict measures have been introduced to expand the tax net.
Under these measures, if a person who is eligible for registration under the Sales Tax Act does not voluntarily register, an authorized FBR officer or Inland Revenue Commissioner will forcibly register that person based on their investigation.
Additionally, two new clauses, 14AC and 14AD, have been included, under which strict action will be taken against non-filers and those avoiding registration.
According to the report, under clause 14AC, the Commissioner will have the authority to freeze the bank accounts of any unregistered individual through a written order, and this restriction will only be lifted after registration.
Earlier, the Federal Board of Revenue proposed increasing the withholding tax rate on non-filers for cash withdrawals from banks from 0.6 percent to 1.2 percent in the new budget.
Sources were quoted as saying that the government’s move aims to make financial activities more difficult for those who do not file tax returns, so that they too come under the tax net. According to a report published on May 31, the government was considering abolishing the category of non-filers starting July 1, 2025.