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FBR Proposes Harsh Enforcement Measures Against Tax Filers with Incorrect Information

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The Federal Board of Revenue (FBR) is considering strict measures to penalize individuals who file incorrect or incomplete income tax returns. These measures include imposing a fine of Rs 1,000,000 and freezing the bank accounts of such filers. The FBR aims to prevent individuals from purchasing properties or vehicles, disconnecting utilities, and imposing heavy fines to meet the tax collection target.

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However, tax advisors are concerned that these measures may punish compliant taxpayers who make unintentional filing errors. Leading tax expert Dr Ikram ul Haq supports these measures, stating that some individuals abuse the law by filing “Nil” returns to avoid higher withholding tax rates. This has led to an increasing number of “nil filers” due to the high withholding tax rates for non-filers. The FBR is considering these measures to strengthen enforcement and address tax non-compliance.

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