The Pakistan Tax Bar Association (PTBA) has urged the Federal Board of Revenue (FBR) to extend the deadline for tax return filing to October 25, 2024, following the government’s recent decision to abolish the non-filer status. This request follows the PTBA’s long-standing advocacy for the removal of the non-filer category, which they argue lacks a legal foundation.

According to the PTBA, the elimination of the non-filer status is expected to enhance confidence among existing tax filers and encourage compliance from individuals who previously avoided the tax system. The association believes that this initiative will boost tax revenue and strengthen Pakistan’s overall tax framework, aligning it with other strong economies where non-filer statuses do not exist.

The PTBA highlighted that this change will have significant implications for those who have not been filing taxes, as they will now face restrictions on property purchases and opening bank accounts, compelling them to join the formal tax system. The association emphasized the importance of proper tax collection and the effective use of tax revenues in critical sectors such as health, education, transport, and infrastructure. They believe that directing tax revenue to these areas will help reduce inflation and lessen the tax burden on citizens over time.

While the PTBA welcomed the government’s move, they also requested the tax return filing deadline be extended from September 30 to October 25. They argued that this extension would give non-filers an additional opportunity to comply with the new regulations and contribute to the national economy.