
15/05/2024
In an effort to enhance tax revenues and broaden the tax base, the Federal Board of Revenue (FBR) has made a bold decision aimed at non-filers.
As part of this initiative, the FBR intends to implement a significant increase in withholding tax, raising it from 2.5 percent to a substantial 90 percent for non-compliant individuals.
For instance, sources familiar with the matter indicate that if a non-filer tops up their mobile phone with Rs100, Rs90 will be deducted and remitted to the tax authority.
Additionally, continued non-compliance will result in additional penalties, with a 90 percent tax imposed on each new SIM card purchase by non-filers. This tax will also be applicable to subsequent recharges and usage of calling and mobile data plans.
The FBR has recently released lists identifying over 500,000 non-filers, directing the Pakistan Telecommunication Authority (PTA) and telecom companies to block their SIM cards. Presently, approximately 11,500 SIM cards have been blocked, with further restrictions anticipated in the days ahead.
Telecom companies have until May 15 to block SIM cards belonging to all identified non-filers. This action follows the FBR's identification of millions of potential taxpayers who have failed to meet their tax obligations.