In a recent meeting with representatives of key industries, the Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said that the government is planning to eliminate the category of non-filers, which will require everyone to make transactions through banking channels.
This is a part of FBR’s transformation plan to curb cash flows in the economy.
Langrial was of the view that non-filing is a fraudulent method established domestically. He said that the FBR will generate data to monitor citizens’ financial transactions.
Most importantly, property transactions will be categorised into only two groups: ineligible and eligible.
According to Dawn, businesspeople were briefed regarding the tax authority’s overhaul. Langrial said that the FBR has no option but to eliminate the issue of nil-filing and non-filing of returns.
This step is crucial because if the situation does not get better, it will be nearly impossible for the government to collect taxes.
It was revealed that the tax authority will establish disincentives for non-compliant taxpayers, starting with linking the availability of facilities such as investments and the opening of bank accounts to the filing of tax returns.
There will be no monetary transactions, and the source of funds will have to be established through digital interventions.
The meeting highlighted the potential tax gap across 20 sectors, with the largest gap reported in the textile sector at Rs700 billion.
