KARACHI: With the aim to bring non-taxpayers into tax net, the Federal Board of Revenue (FBR) has decided to block the computerised national identity cards (CNICs) of non-filers for business and financial transactions.
Member Inland Revenue (Operations) Muhammad Irshad, while talking to media, said that the revenue collection authority is waiting for an approval from the federal government.
It is pertinent to mention that a meeting of Senate Standing Committee on Finance in April recommended the FBR to block the CNICs of non-filers.
Member Irshad said a difference in withholding tax rates for filers and non-filers was created to encourage returns filing. The practice of increasing withholding tax on non-files has helped surge in number of taxpayers to above one million in 2015, he added.
Irshad said in the budget 2016-17, withholding tax rates on various transactions, especially on immovable properties, were further raised.
In the recent budget, the government amended eighth provisions in the Income Tax Ordinance, 2001 by enhancing the withholding tax rate by 100 percent for both filers and non-filers.
