Finance Minister Muhammad Aurangzeb spoke in the National Assembly. He addressed non-filers of income tax. Non-filers must explain their position. They could face a travel ban. Section 116 of the Income Tax Ordinance 2001 will apply. It involves foreign assets. It also includes the spouse’s assets. This applies if the spouse depends on the taxpayer. The Federal Board of Revenue (FBR) will review habitual late returns.
They will fine late filers. If a non-filer misses the deadline once, the fine increases. The government aims to strengthen tax enforcement. They propose travel bans for non filers.
No Travel Ban for Non-Filers Without Prior Notice
FBR Chairman Amjad Tiwana spoke on Saturday. He said no travel ban exists for non filers yet. They need a notice first. The Income General Tax Order must include them.
Tiwana clarified this before the Senate. Senator Saleem Mandviwala led the session. This was the fifth committee meeting. They reviewed the Income Tax Ordinance 2001. The focus was on Clause 6 of the Finance Bill 2024.
Tiwana said passports and NTN will link. This will happen after notice. It will ease public worry. The government proposed travel bans for non filers. They want to force tax filing.
Finance Minister Aurangzeb spoke on June 12. He wants a larger tax base. He wants a higher tax-to-GDP ratio. The finance bill changes Section 114B. Non-filers could face travel bans.
Section 114B also cuts phone, electricity, and gas. Non filers face service cuts if they don’t file taxes. The penalty for defiance is Rs100m. It rises to Rs200m for repeated offenses.
A new “late filer” category will start. It targets inconsistent filers. They could face stricter penalties. A 10% tax levy is proposed.
To read our blog on “Non-filers face penalties in a strict new budget crackdown,” click here.
