(Web Desk) – With an aim to boost revenues and expand tax net, Federal Board of Revenue (FBR) has decided to target non-filers with a significant increase in withholding tax, jumping from 2.5 per cent to a whopping 90 per cent.
Under this new rule, non-filers will pay Rs90 out of every Rs100 mobile recharge. Rs90 will be deducted and sent to the tax authority.
Moreover, persistent non-compliance will lead to further penalties. Non-filers will face a 90 percent tax on every new SIM card purchase, as well as on subsequent recharges and usage of call and data plans.
To enforce this, the FBR has shared lists identifying over 500,000 non-filers and instructed the Pakistan Telecommunication Authority (PTA) and telecom companies to block their SIM cards.
Already, around 11,500 SIM cards have been blocked, with more expected to follow in the coming days.
Telecom companies have until May 15 to block SIM cards linked to all identified non-filers. This crackdown comes after the FBR identified millions of potential taxpayers who haven’t fulfilled their tax responsibilities.
The aim is to encourage everyone to contribute to the country’s development by paying their fair share of taxes.