LAHORE: The Federal Board of Revenue (FBR) has set today, October 14, as the final deadline for filing tax returns for the financial year 2023-2024. After multiple extensions, today is the last chance for the public to submit their tax documents.
On Sunday, the FBR confirmed the deadline extension in an official statement. The decision came after several requests from the public, trade organizations, and tax bar associations. According to the sources, this would be the final extension.
FBR Chairman Rashid Mehmood Langrial issued a stern warning last week to those attempting to evade taxes. He emphasized strict action against under-filers. He stated that non-compliance would lead to significant consequences, such as restrictions on financial transactions.
“People who fail to file their taxes will not be able to buy property, vehicles, or even operate bank accounts,” Langrial said. He also warned that air travel could be banned for those who don’t file their tax returns. He reiterated that October 14 is the last date for tax submissions, and no further extensions would be granted.
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Non-filers
The government is taking serious steps to end the non-filer category. Non-filers have previously avoided paying taxes by paying small fees during transactions like buying property and cars. These loopholes will soon be closed. Individuals who fail to file taxes will face heavy restrictions on major transactions, Langrial added.
Last month, the FBR announced several restrictions aimed at increasing tax compliance. These include bans on purchasing property, buying vehicles, investing in mutual funds, and opening bank accounts for non-filers. International travel for non-filers will also be restricted, with the exception of religious purposes.
The government aims to broaden the tax base and increase revenue by enforcing these restrictions. Langrial also emphasized the importance of increasing tax compliance, as under-filing remains a significant issue in Pakistan’s tax system.
Government’s Goal
To address this, the FBR is enhancing its audit capabilities to catch those who under-report their income. The government’s goal is to raise the tax-to-GDP ratio to 15%. The provinces are also expected to increase their tax contribution, bringing the overall tax-to-GDP ratio to 18%.
This move is part of a broader effort to address Pakistan’s economic challenges by improving tax compliance and reducing tax evasion. The government believes that ending the non-filer category will help achieve these goals and ensure that everyone contributes their fair share to the country’s economy.
As the final deadline looms, the FBR urges all taxpayers to meet their obligations by filing their returns today to avoid facing these restrictions.
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