Tax filers doubled during FY2024-25, says finance minister

Follow Us on Google News

Finance Minister Muhammad Aurangzeb on Sunday said that tax filers for the current fiscal year had nearly doubled as compared to last year, stating that around 723,000 new filers have registered themselves.

On September 20, Prime Minister Shehbaz Sharif approved drastic measures for tax enforcement and compliance, including a ban on all banking and financial transactions for non-filers of tax returns.

“I think it is important that we, as a government, are walking the talk,” he said during a press conference held in Islamabad along with the Federal Board of Revenue (FBR) chairman.

“This also shows our resolve as we go forward.”

The finance minister said that the FBR chairman had presented a report to the prime minister on non-filers and underfilers. On this, I have stated that the estimated tax evasion of individuals who underfile amounted to Rs1.3 trillion.

“I think I’ve already talked about that we have to declare war on cash in this country,” he said. “When we talk about (going) in G20, we will only go in the G20 if all this goes in documented economy.”

He said that since the estimated amount for cash-in-circulation was around Rs9 trillion and the FBR budget was Rs9.3 trillion, one could estimate that the current size of the country’s economy stood at more than $700 billion.

As for non-filers, the finance minister emphasized that “they will not be able to, going forward, buy vehicles, properties, mutual funds, and (open) current bank accounts — they will have difficulties in cash withdrawals and deposits.”

For under filers, he stressed the government will reduce human intervention by creating a digital interface. Through digital algorithm, he said, the government will gauge the difference between what people have declared and the current value of their assets.

He added that such measures were important for citizens’ rights so that tax collectors would not go and “harass them.”