KARACHI: The government has included a number of punitive measures, including the potential for travel bans, in the annual budget for FY2024–2025 to penalize people and companies that fail to file income tax reports.
The actions seemed to be just another attempt by the government to force people who were not reporting taxes to file so that the economy could be documented.
Finance Minister Muhammad Aurangzeb stated that the government’s goal in implementing these reforms was to broaden the tax base and raise the tax-to-GDP ratio during his statement on the National Assembly floor on Wednesday.
According to him, the steps are intended to digitalize the economy in order to establish a progressive taxation system in which taxpayers pay taxes according to their income.
Section has been suggested to be amended by the finance bill.
