Making life much harder for non-filers
The government has proposed a series of punitive measures in the annual budget for FY2024-25 to punish individuals and businesses who do not file income tax returns, including the possibility of being barred from foreign travel. The measures appeared to be another attempt by the government to coerce non-filers into filing their tax returns for the documentation of the economy. In his speech on the floor of the National Assembly on Wednesday, Finance Minister Muhammad Aurangzeb said the government aimed to increase the tax base and widen the tax-to-GDP ratio through these measures. The measures are aimed at digitising the economy to implement progressive taxation regime where people pay taxes based on their income, he added. The finance bill has proposed amendments to Section 114B of the Income Tax Ordinance, 2001 to stop non-filers from travelling abroad.