Islamabad: The Federal Board of Revenue (FBR) has set today as the final deadline to file income tax returns for the 2023-24 fiscal year, with no extensions granted beyond this date. Chairman Rashid Mehmood Langrial has issued a final reminder to those who have not yet filed, highlighting the severe consequences of non-compliance.

According to Zameen.Com, Chairman Langrial emphasized that October 14 marks the last opportunity for taxpayers to submit their returns. Failure to comply could lead to significant restrictions for individuals, such as prohibitions on making large transactions like property or vehicle purchases, and restrictions on bank account operations. The FBR also plans to eliminate the category of non-filers soon, adding even more restrictions, including potential bans on air travel for non-compliance. The government introduced these measures last month as part of an effort to improve tax compliance and expand the tax base, focusing on restrictions related to property purchases, vehicle ownership, mutual funds investments, opening current accounts, and international travel, with the exception of religious journeys.

The overarching aim of these reforms is to enhance the audit capabilities of Pakistan’s tax system and address under-filing issues. By increasing the tax-to-GDP ratio to 15%, coupled with petroleum levies and additional provincial contributions of 3% GDP, the total tax revenue could reach an estimated 18%.