Members of the Senate Standing Committee on Finance proposed a sweeping measure on Thursday to prohibit non-filers from purchasing cars, houses, and tickets for foreign travel. The move comes as the committee highlighted concerns over the country’s unsustainable 9.5% tax-to-GDP ratio.
Chairman Salim Mandviwala presided over the committee meeting where Finance Minister Muhammad Aurangzeb emphasized the necessity of increasing the tax base. He outlined plans for comprehensive digitization of tax systems and indicated that higher incomes would face increased taxation.
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Minister Aurangzeb underscored the urgency of addressing non-filers, proposing restrictions that would limit their activities to Umrah and Hajj travel only. Senator Mohsin Aziz supported the measures, suggesting that individuals without a National Tax Number (NTN) should be barred from purchasing cars and houses. He pointed out that a significant portion of industry buyers are currently non-filers.
The discussion also touched upon challenges faced by the export sector under the current tax regime, with Senator Anusha Rehman advocating for reduced taxes on mobile phones. Minister Aurangzeb additionally announced plans to bring 31,000 retailers across six cities into the tax system starting July, emphasizing the need to balance national debt interest payments against tax revenues.
Overall, the committee’s deliberations underscored a pressing need for tax reforms to bolster revenue streams and sustain economic stability.
