The federal government is set to intensify its efforts to bring tax non-filers into the tax net as part of its strategy for the Budget 2024-25, according to sources cited by ARY News on Wednesday.
One of the key measures includes the issuance of notices to non-filers, warning them of serious consequences if they fail to respond. In the absence of a satisfactory reply, the government plans to disconnect the non-filers mobile phone SIM cards, as well as their electricity and gas supplies. This aggressive approach aims to pressure non-filers into compliance and will be a continuing process into the next financial year.
The Federal Board of Revenue (FBR) has outlined an enforcement plan designed to significantly boost tax revenues in the upcoming fiscal year. The strategy includes withdrawing various tax exemptions in sales tax, income tax, and customs duties that have previously allowed many to avoid paying their fair share. The removal of these exemptions is expected to generate substantial additional revenue for the government.
Additionally, the budget proposes to impose a sales tax on petroleum products, which is anticipated to increase tax revenues substantially. The government believes that the surge in imports will further enhance tax recoveries, contributing to the overall increase in fiscal revenue.
A notable aspect of the budget is the proposal to impose additional taxes specifically targeting non-filers. This move is part of a broader initiative to ensure that all sectors of the economy contribute to the national revenue. The retail sector, which has traditionally been difficult to bring under the tax net, will be a significant focus of this year’s budget. The government plans to introduce measures that will make it harder for businesses in this sector to evade taxes.
Moreover, the real estate sector, another area that has seen widespread tax evasion, is also expected to face additional taxation. By implementing these measures, the government aims to expand the tax base, ensuring that more sectors contribute to the national exchequer.
The FBR’s strategy also includes collecting taxes from currently untaxed sectors of the economy. This comprehensive approach is designed to close the gaps that allow for tax evasion and to ensure a more equitable distribution of the tax burden.
The Budget 2024-25, which is being tabled in Parliament today, reflects the government’s commitment to increasing fiscal responsibility and improving revenue collection through stringent enforcement and broadening the tax base. These measures are expected to play a crucial role in stabilizing the economy and funding public services and infrastructure projects.
