Govt unveils record Rs1.5tr tax plan

The government on Wednesday proposed imposing a record Rs1.5 trillion in additional taxes to achieve an ambitious Rs13 trillion target for the new fiscal year, which is expected to unleash an inflationary storm in Pakistan due to heavy indirect taxation and further reductions in individual incomes. In an unprecedented move, despite heavy taxation, there remains an Rs800 billion gap between the measures taken in the budget and the new Rs12.970 trillion tax target. The government has also banned foreign travel for non-filers of income tax returns, except for Hajj. Additionally, a 75% higher tax on mobile phone calls has been imposed on those who have not filed returns despite receiving notices. The government has also proposed to seal the shops of traders who do not file income tax returns, including imprisonment for six months. For tax evasion over Rs500 million, a five-year jail term is proposed, and in cases of fraud over Rs1 billion, the jail term will be ten years.