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The Chief of the Federal Board of Revenue (FBR), During a recent Senate’s Standing Committee on Finance and Revenue hearing, suggested that the government may suspend electricity and gas connections for non-filers as part of efforts to expand the tax base.
In another development, the Senate’s Standing Committee on Finance and Revenue, chaired by Saleem Mandviwalla, approved a proposal on Saturday to impose a foreign travel ban on non-filers. Several decisions were taken during this session.
FBR Chairman Zubair Tiwana informed the committee that individuals failing to file tax returns would face actions under the Income Tax General Order (ITGO). However, certain exemptions would be granted to nationals for Hajj, Umrah, children, students, and holders of the National Identity Card for Overseas Pakistanis (NICOP).
He elaborated that non-filers could face suspension of SIM cards, electricity and gas connections, and potential closure of their businesses. Tiwana also mentioned the approval of a higher withholding tax rate for non-filers, noting that the list included 500,000 people earning over 2 million annually.
Furthermore, Tiwana stated that individuals on the list had previously disclosed their income statements with their tax returns. He emphasized that temporary filers would also be subject to additional taxes when purchasing vehicles, plots, or residences.
Moreover, the Senate body approved proposals to revise salary slabs, increase taxes, and impose a 75% withholding tax on cellular and internet bills of non-filers.