Pakistan’s Federal Board of Revenue (FBR) has implemented a significant increase in withholding tax for individuals who haven’t filed their income taxes. In a move aimed at boosting tax revenue and expanding the tax net, the FBR has raised the withholding tax from 2.5% to a substantial 90% on mobile phone recharges for non-filers.
No tax? No talk! Pakistan hikes mobile fees
Under the new regulation, if a non-filer adds Rs.100 to their mobile phone balance, Rs.90 will be deducted automatically. And the deducted amount will go to the tax authorities. Additionally, persistent non-compliance will incur further penalties. Non-filers will face a 90% tax on any new SIM card purchases, along with subsequent recharges and usage of call and data plans.
To enforce these measures, the FBR has provided the Pakistan Telecommunication Authority (PTA) and telecom companies with lists containing over 500,000 identified non-filers. This collaboration has already resulted in the blocking of approximately 11,500 SIM cards. With more expected to follow in the coming days.
Also read: PM Shehbaz Sharif Suspends High-Ranking FBR Official, Others For Delaying Tax Cases
Telecom companies have been granted a deadline of May 15th to block all SIM cards associated with identified non-filers. This crackdown by the FBR stems from the identification of millions of potential taxpayers who are not fulfilling their tax obligations. The initiative aims to encourage everyone to contribute to the country’s development through the payment of their fair share of taxes.
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