In the current fiscal year, FBR has successfully collected over Rs 10 billion from citizens through cash withdrawals. This substantial amount, collected as advance tax, primarily targets customers whose banks have central offices in Karachi.
To generate this revenue, the FBR has imposed a 0.6 percent advance tax on cash withdrawals from banks, specifically targeting transactions that exceed Rs 50,000 in a single day. Additionally, non-filers, or those who do not file income tax returns, are subjected to a flat tax of Rs 300 on cash withdrawals of Rs 50,000 or more in a single day. Individuals not listed in the Active Taxpayer List (ATL) also face withholding tax deductions by the FBR, further ensuring compliance.
Beyond cash withdrawals, the FBR has implemented stringent measures against non-tax filers in collaboration with cellular companies. As a result, over 11,000 SIM cards belonging to non-filers have been blocked so far. Initially, telecommunication companies blocked over 3,000 SIM cards of individuals who had failed to file their income tax returns. Following this, another 9,000 SIM cards were blocked, bringing the total number to 11,252.
FBR Spokesperson Bakhtiar Ahmed Khan stated that the FBR will continue to provide data on non-filers to telecom companies. The plan involves transferring data of 5,000 non-filers daily, which is expected to lead to further blocking of SIM cards. To date, the FBR has identified over 550,000 non-filers.
These measures are part of a broader effort by the FBR to enhance tax compliance and ensure that all citizens contribute their fair share to the national treasury. By imposing taxes on cash withdrawals and blocking SIM cards of non-filers, the FBR aims to encourage more people to file their tax returns and join the Active Taxpayer List (ATL).
The FBR’s actions reflect a determined effort to address tax evasion and improve the country’s financial health. With these steps, the FBR hopes to foster a culture of tax compliance and accountability among citizens, ultimately leading to a more robust and transparent tax system.
In addition to these measures, the FBR is also working on improving its data collection and analysis capabilities to better identify and track non-filers. This proactive approach ensures that the FBR can efficiently target those who attempt to evade taxes, thereby enhancing overall tax revenue and contributing to the country’s economic stability.
The collaboration between the FBR and telecommunication companies is a significant step towards achieving these goals. By leveraging technology and data, the FBR can implement more effective tax enforcement strategies, ensuring that all eligible taxpayers fulfill their obligations. This comprehensive approach underscores the FBR’s commitment to strengthening Pakistan’s tax system and promoting economic growth.
