The Federal Board of Revenue (FBR) is set to bring approximately 2.8 million potential households into the tax net, which is expected to contribute around Rs1.6 trillion to the national economy.
“There are about 3.5 million top households liable to pay taxes to the government; however, 2.8 million of them are not currently paying taxes,” FBR spokesperson Bakhtiar Muhammad told state-run news agency APP.
The government has launched a comprehensive plan to enhance the tax-to-GDP ratio, which has resulted in an increase in both the number of tax filers and overall tax collection during the current fiscal year (2024-25).
Bakhtiar noted that the filing of tax returns has seen a 105% increase, rising from last year’s 1.8 million to 3.7 million due to the prudent policies adopted by the government.
The FBR has decided to impose 15 restrictions on non-filers within the next two to three months through a finance bill. Non-filers will not be allowed to purchase properties or vehicles, travel abroad, or open current accounts in any bank.
He further explained that taxpayers benefit from reduced bank transaction fees, while non-filers are required to pay extra. However, the FBR is now working to completely eliminate the non-filer category.
“This development will make tax filing mandatory for individuals,” he added.
He emphasized that income could either be invested or spent, but the FBR will make both activities inaccessible for non-filers using automation. The FBR plans to integrate payment and invoicing systems to enforce this.
Bakhtiar also mentioned that the digitization of the customs examination and appraisal processes is currently underway.
Speaking on revenue collection, the spokesperson highlighted that the FBR surpassed its September 2024 target by collecting Rs1.106 trillion.
It is worth mentioning that FBR Chairman Rashid Mahmood Langrial recently discussed the FBR’s Transformation Plan and key reforms with the World Bank. These reforms focus on aligning initiatives under the Pakistan Raises Revenue Project.
The reforms include tax policy reforms, digitalization initiatives, capacity building of human resources, anti-smuggling measures, and broad-based tax administration reforms.
To accelerate the digitization process, the FBR has restructured its senior tax officials to streamline functions and enhance digitization efforts.
A notification issued by the board highlighted its commitment to empowering the Member (Operations) and Member (Policy) to improve tax compliance.
As per the notification, the post of Member (Public Relations) has been re-designated as Member (Taxpayer Services), while the post of Member (Accounting) has been re-designated as Member (Organizational Audit).
Additionally, the Director General (Revenue Analysis) will now report to the Member (IR-Policy), and the Director General (Internal Audit-IR) will report to the Member (Organizational Audit).
Furthermore, the roles of Member (Information Technology) and Member (Digital Initiatives) have been merged and re-designated as Director General (Information Technology and Digital Transformation), who will report to the Member (IR-Operations).
To streamline operations, the powers and functions of the Member (Information Technology) and Member (Digital Initiatives) will now be exercised by the Member (IR-Operations).
