Nil-filers' number surges to 2.3 million amidst tax drive

During the tireless effort to collect tax returns, the authorities were besieged by the difficulties of nil returns, as the number reached an alarming level of 68 percent of total income tax in 2023.

According to official sources, 2.3 million out of 3.4 million potentially were concealing their taxable income, indicating that only 1.1 million showed their actual income in 2023.

Those filers who do not receive income in the entire financial year submit nil returns, or they are submitted for one-time financial transactions, or take advantage of lower tax returns.

However, the sources said that the Federal Board of Revenue (FBR) has decided to send an e-notice to 1.6 million nil-filers to ask them to submit their actual tax.

It added that the nil filers were identified on the basis of their transaction activities, which reflects that they have income but did not report to evade the tax.

The authorities were deliberating on the proposal that recommended restricting non-filers from engaging in any financial or investment activities and travel except Ziarat and Hajj.

There were two more forms of nil-filers, who were registered but did not share their income, while 0.3 million nil-filers paid their tax under a fixed tax scheme.

Similarly, below-threshold returns filers are those, who claim that their income is below those returns. According to the report of the Pakistan Statistic Bureau, the threshold filer stood at 50,000, while 2.7 million people fell in the nil-filers category.

The sources said that the government is mulling to introduce digital invoices to counter the nil filing system, as the statistics revealed that at least 200,000 were paying less tax.