Big News for Non-Filers in Pakistan; Details Here
Key Takeaways
- FBR now mandates banks to share credit card records, specifically monitoring spending over Rs2 lakh monthly by non-filers.
- Non-filers exceeding the Rs2 lakh monthly credit card spending threshold will be added to the FBR's monitoring list.
- October 15 is the final, non-extendable deadline for submitting tax returns, with SMS alerts being sent to defaulters.
- The FBR intends to use transaction monitoring to uncover the true income of tax evaders and will take zero-tolerance action post-deadline.
- The 'Estimated Fair Market Value' column has been removed from returns to ease the filing process.
Pakistan's Federal Board of Revenue (FBR) has introduced stringent new measures targeting individuals who do not file income tax returns, primarily through enhanced monitoring of credit card usage. Banks are now obligated to share detailed records of customers' credit card transactions, specifically flagging those who spend more than Rs2 lakh per month without being tax filers. The FBR is increasing its focus on these high-spending non-filers, requiring them to explain their expenditures as part of tighter financial checks. Taxpayers are simultaneously being reminded to declare all credit card spending in their returns, with October 15 set as the absolute final deadline for submission, with no extensions forthcoming. Officials believe monitoring these card transactions will effectively expose the real income of tax evaders, leading to zero-tolerance action, including notices for those making large payments without declaring income. Furthermore, the FBR confirmed the removal of the 'Estimated Fair Market Value' column to simplify the filing process, while simultaneously rejecting claims that the IRIS system is experiencing slowdowns.
