A Major Tax Reform
non-filers It will be recalled that the Government of Pakistan has recently. Decided to do away with the ‘non-filer’ category in a bid to expand the tax net and enhance tax collection. This decision from [Date] are new in nature than previous tax regimes and has implication for all, both individuals and businesses in the country.
What Does ‘Non-Filer’ Mean?
non-filers Before, people and companies that failed to file their income tax returns known as Non-Filers. It was usually accompanied by restrictions and penalties that include some freezes on certain operations with money as well as higher tariffs for numerous services.
The New Regime
The removal of the ‘non-filer’ category, therefore, makes every citizen and company a filer, without distinction of their level of income. This is likely to ensnarl a vast population of independants and firms who were previously outside the tax net.
Potential Impacts of ‘Non-Filer’
The decision to abolish the ‘non-filer’ category could have several impacts on individuals and businesses:
Increased Tax Burden ‘Non-Filer’ : To the taxpayers who have not been submitting returns frequently, this new provision may result to a great increase in the taxes payable by them.
Enhanced Financial Inclusion: Government expects that by compelling people and companies to file their returns they are going to enhance financial liberalization and accountability.
Economic Growth ‘Non-Filer’ : This broad base can help the government earn more revenue to support services from which the economy may benefit.
Administrative Challenges: There may be some problems into the administration of this major tax reform and the tax authorities will have to process a larger n umber of returns and enforce compliance.
How Will This Affect You?
For those of you living in Pakistan, the recent changes probably. Mean that regardless of the amount of income you make, you will have to file your income tax.
The best course of action in this respect would be to seek the services of a tax advisor. To ensure that one knows what his or her responsibilities are in this new tax. Laws regime or whether any changes affect him/ her at all.
Conclusion
The recent unprecedented Pakistani government’s move to eliminate the ‘non-filer’ option is a major taxation revolution with consequences. Though it may incline the tax system to place a burden on some people. It is seen to foster the financial liberalisation process, improve on the use of information in terms of the provision.
FAQs
What is a ‘non-filer’?
An enemy is a person or organization that does not file his or her income tax returns.
2. Why is the government abolishing the ‘non-filer’ category?
The measures involve widening the tax net revenues, and enhancing accountability and political will by the government.
3. How can I file my income tax return?
The returned income tax return can be filed either through www.fbr.gov.pk. Or by visiting any of the FBR Income Tax Office.
4. Does this mean everyone needs to file a tax return, regardless of their income?
The question now is, are all individuals and businesses able to file an income tax return irrespective of the income?
5. What are the potential consequences of not filing a tax return?
Tax evasion results in penalties and fines and can even lead to a restriction of individual operations. More specifically, not filing taxes leads to restricted access to different operations.