In a bold move aimed at expanding the tax net and boosting revenues, the Federal Board of Revenue (FBR) has unveiled a new strategy targeting non-filers across the nation. The initiative involves a significant increase in withholding tax, skyrocketing from a mere 2.5% to a substantial 90% for those failing to comply with tax regulations.
Under this plan, individuals who are non-filers will face automatic deductions of 90% from their mobile phone balances whenever they recharge. For example, if a non-filer reloads Rs100, a hefty Rs90 will be siphoned off and remitted to the FBR, effectively tightening the noose on tax evasion.
Stringent Measures to Ensure Compliance
Persistent non-compliance will trigger even stricter penalties, with a whopping 90% tax imposed on every new SIM card purchase by non-filers. This levy extends to subsequent recharge activities and the use of calling and mobile data plans, incentivizing adherence to tax regulations.
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The FBR’s recent directive to block SIM cards belonging to over 500,000 identified non-filers marks a pivotal step in enforcing tax compliance. With approximately 11,500 SIM cards already blocked and more slated for restriction, the FBR’s resolve to curb tax evasion is evident.
Deadline Looms for Telecom Companies
Telecom companies have been given until May 15 to block SIM cards linked to all identified non-filers, underscoring the urgency of the tax enforcement measures. Failure to comply may result in legal repercussions, highlighting the FBR’s determination to uphold tax regulations and ensure accountability.
Amid initial resistance from telecom companies, subsequent discussions have led to a consensus on implementing the Income Tax General Order (ITGO). This collaborative approach underscores the importance of cooperation between regulatory bodies and private entities in upholding fiscal integrity.