FBR to abolish non-filers category

The Federal Board of Revenue (FBR) has decided to abolish the non-filers category, mandating that all financial transactions be conducted through banking channels to curb cash flows in the economy. 

Key transactions, including property purchases, car buying, mutual fund investments, and opening current accounts, will now be restricted to tax filers. International travel, except for religious purposes, will also be subject to this mandate.

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial revealed that 15 activities, including these five areas, will be prohibited for individuals who fail to file their tax returns. 

Speaking at a consultative meeting, Langrial criticized the existence of the non-filer category, arguing that such classifications do not exist globally. He announced that the focus would now shift to distinguishing between compliant and non-compliant taxpayers. 

He added that last year, the government only collected Rs25 billion in fees from non-filers, while significant potential tax revenue remains uncollected.

The reforms will be implemented gradually over the coming months through an ordinance, with the law ministry involved in drafting the necessary rules. Non-filers will be barred from opening regular bank accounts, although basic accounts for low-income individuals will be exempt from this restriction.