FBR warns tax defaulters of bank freeze, travel ban

In a stern move, the Federal Board of Revenue (FBR) has issued a warning to individuals failing to file income tax returns, indicating potential consequences such as the freezing of bank accounts and restrictions on domestic and international travel.

FBR's field formations across the country are actively conducting surveys and collecting information on businesses and commercial activities, with details to be made available on the FBR website soon.

The official documents highlight that Pakistan, with a population of 240 million, faces the challenge of a narrow tax base, with only 5.2 million individuals registered in the tax system and filing returns in 2022. 

The country grapples with widespread tax evasion, a low tax-to-GDP ratio, and a deficiency in the number of tax filers, impacting revenue generation and hindering critical public services and socioeconomic development initiatives.

Recognizing the urgent need to broaden the tax base, FBR has initiated a nationwide drive targeting eligible individuals and those with taxable income, encouraging them to register with the tax system and file their income returns. The goal is to add 1.5 million new taxpayers during the current year.

With FBR in possession of data on almost all eligible non-filers, individuals are advised to take advantage of the available time, visit their nearest tax office, and get registered to avoid potential consequences, including penalties, fines, utility disconnection, bank account suspension, and, in extreme cases, travel restrictions on motorways and abroad, warned FBR official.