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The Federal Board of Revenue (FBR) has issued a stern warning to individuals who have not filed their income tax returns, stating that they could face severe consequences, including the suspension of bank accounts and restrictions on both domestic and international travel via motorways and air travel. 

Muhammad Asif, Chief of Broadening the Tax Base (BTB), informed the media that the FBR has initiated a comprehensive nationwide survey of businesses and commercial entities to identify non-filers for registration. 

Non-filers are urged to register with their nearest tax office promptly to avoid penalties, fines, utility disconnection, and the suspension of bank accounts.  

In extreme cases, non-compliance may lead to restrictions on movement on motorways and at airports.  

The FBR, through its countrywide field formations, is actively conducting surveys to gather information on businesses and commercial activities, which will be accessible on the official website soon. 

According to official documents, despite Pakistan’s population reaching 240 million, only around 5.2 million individuals are registered in the tax system and filed their income returns in 2022.  

The country faces significant challenges in its fiscal landscape, marked by widespread tax evasion, a low tax-to-GDP ratio, and a limited number of tax filers, resulting in insufficient funding for essential public services and critical socioeconomic development initiatives. 

Recognising the urgency of expanding the tax base to strengthen the nation’s financial foundation, the FBR has launched a nationwide drive targeting eligible individuals and those with taxable income to register with the tax system and file their income returns. The goal for the current year is to add 1.5 million new taxpayers. 

The Director of BTB highlighted that the FBR, through third-party data acquisition, has compiled the financial transaction data of hundreds of thousands of individuals not yet in the tax net.  

This information is accessible on the FBR’s website under the title “MALOMAAT,” allowing individuals to review their transactions over the past few years. 

The FBR emphasises that it possesses data on nearly all eligible individuals for filing income returns, and non-compliance will be addressed within a few weeks.  

According to Brecorder, to avoid penalties, fines, utility disconnection, and travel restrictions, individuals are urged to take advantage of the available time, visit their nearest tax office, and register promptly, as stated by Muhammad Asif.