Is government considering travel ban on non-filers? The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced that non-filers of income tax returns will be given a chance to explain their position before being barred from travelling abroad. Addressing the National Assembly, the minister emphasized the government’s commitment to enforcing tax compliance while ensuring fairness for individuals who may have legitimate reasons for not filing on time.
Travel Ban on Non-filers: All the Details
Under the proposed measures, non-filers will be allowed to provide an explanation regarding their tax status before any travel restrictions are imposed. The procedure is in line with Section 116 of the Income Tax Ordinance 2001, which requires a declaration of foreign assets and the assets of a spouse, especially if the spouse is financially dependent on the taxpayer. The Federal Board of Revenue (FBR) will review these declarations and determine whether the non-filer has a history of late returns. Habitual late filers will face fines, and the amount will increase if the non-filer has repeatedly missed deadlines.
Strengthening Tax Enforcement
The federal government aims to strengthen tax enforcement through these measures, ensuring that non-filers cannot evade their tax responsibilities without consequence. By proposing a travel ban on non-filers, the government is taking a firm stance against tax evasion. However, the opportunity for non-filers to explain their circumstances provides a balanced approach, allowing individuals to clarify their positions before facing penalties. The FBR’s role in evaluating the explanations and enforcing penalties is crucial to the success of this initiative.
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