FBR is taking risky steps to raise tax revenues and expand the tax base. Their new decision targets non filers with an important rise in tax withholding, from 2.5% to 90%.
According to new amendment, if an individual who fails to file their taxes adds Rs100 to their cell phone, Rs90 would be got rid of and sent to the tax office.
Charged a 90%
In addition, long-term violations will result in additional sanctions. Non-filers will be charged a 90% tax on each new SIM card purchase, as well as subsequent recharges and use of call and data plans.
To do this, FBR issued names of over 500,000 non-filers and directed the PTA and telecom firms to remove their SIM cards.
11,500 SIM cards
Already, about 11,500 SIM cards have been disabled, with more anticipated to follow in days to come. Already, about 11,500 SIM cards have been disabled, with more anticipated to follow in days to come.
Telecom providers have until May 15 to disable SIM cards belonging to all identified non-filers.
This investigation comes after the FBR noticed millions of taxpayers who have not met their tax obligations. The goal is to motivate everyone to take part in the country’s development by paying their fair amount of taxes.
To read our blog on “PTA suggests sale of illegal SIMs a non-bailable offense,” click here