Prime Minister Shehbaz Sharif has given the green light for new restrictions on compliant taxpayers, preventing them from purchasing assets beyond their explainable income sources. Additionally, non-filers will be banned from acquiring major assets. The Prime Minister has also allocated an additional Rs34 billion to modernize the Federal Board of Revenue (FBR). This decision was made during a meeting on the FBR’s transformation plan. The PM emphasized that there will be no mini-budget and urged the FBR to bridge the anticipated Rs200 billion first-quarter shortfall through enhanced collection.
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The FBR has been instructed to secure legal and regulatory approvals for the five-point plan and increase efforts to curb smuggling around the River Indus. Furthermore, the PM has approved the hiring of private consultants for audits, along with the abolishment of four FBR member positions. The transformation plan aims to incentivize tax collection and improve taxpayer scrutiny through digital means. It also entails denying certain rights to non-filers and introducing a new column in income tax returns. The PM has also endorsed the allocation of Rs34 billion for FBR’s operational needs, including the establishment of new custom posts around the River Indus. Additionally, performance rewards for FBR officers have been approved, with specific incentives for customs officers. The plan also includes hiring private consultants for sector-specific digitization and targeting specific industries for tax compliance.
