Non-filers to face THESE 15 restrictions in Pakistan from Oct 1

In a move aimed at tackling tax evasion and increasing revenue, Pakistan's government has announced plans to eliminate the non-filer category from tax laws and enforce over 15 restrictions on non-filers' activities. 

According to Federal Board of Revenue (FBR) data, there is a stark contrast in tax compliance, with 94% of middle-income taxpayers adhering to regulations, whereas only 29% of the wealthiest 1% do.

Initially, five of the 15 restrictions will be implemented while the remaining will be enforced gradually to a tight noose around the non-filers, as per media reports.

The proposed restrictions include:

Non-religious travel ban: Prohibition on non-religious travel

Cash withdrawal limit: Restriction on annual cash withdrawals over Rs30 million

Asset Purchase Ban: Non-filers cannot buy properties or vehicles

Investment restrictions: Banned from investing in the stock market and mutual funds

Current Account Limitations: Restrictions on opening current bank accounts

Higher Withholding Taxes: Imposition of higher tax rates for non-filers

Income Proof for Property Purchases: Higher-income filers must justify income sources for property buys

Explanations for Other Purchases: Lower-income filers must explain income sources for significant purchases

Additionally, the government also plans to:

Purchase Properties Below Market Value: Acquire undervalued properties reported in tax returns

Implement Cheque Use Restrictions: Limitations on cheque usage for certain transactions

Enforce Transaction Bans: Gradual bans on 15 types of transactions for non-filers

Eliminate Tax Exemptions: Non-filers will not qualify for tax deductions or exemptions

Limit Business Opportunities: Restrictions on conducting business activities

Increase Scrutiny: Enhanced audits and scrutiny for non-filers