ISLAMABAD: The Federal Board of Revenue (FBR) is mulling to introduce a Bill aimed at ending the “late-filer” and “non-filer” categories from the Income Tax Ordinance 2001.
The Bill will abolish the concept of late filers, which was introduced through the Finance Act 2024 and has already been under review by the Lahore High Court.
Sources privy to the development said that the draft bill, which is under preparation, proposes different financial thresholds to define sources of income and the thresholds will be applicable for the purchase of properties and vehicles.
As per the draft, if one of the family members is a filer and justifies his/her source of income, his other family members will not have a compulsion to be filers for transactions.
The family members include a wife (non-filer), father/mother (non-filer), children below 25 years of age (non-filer), and unmarried/divorced widow/daughter.
Sources said that several transactions of the general public would be covered under the new law to make things easier for the masses. For example, people can buy motorcycles and old cars up to 1300cc but have to declare sources for purchasing vehicles above 1300cc.
The FBR may allow property transactions up to Rs 10 million without any restriction.
The FBR will provide information to all banks based on individuals’ declared incomes in tax returns and establish a specific limit; any financing transactions that exceed this threshold will be reported to the FBR. This system is expected to be implemented in the coming months.
