Non-Filers Face Prospect of 30% Tax on Bank Deposits

Islamabad: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has strongly recommended imposing a 30% tax on bank deposits held by non-filers. FPCCI President Atif Ikram Sheikh and Chairman Anomaly Committee (Business) of the Federal Board of Revenue (FBR) Gohar Ijaz advocated for this measure under the taxation reforms agenda during a press conference at the FPCCI Headquarters.

Gohar Ijaz emphasized that approximately 90% of non-filers' money in banks is black money. He suggested that, instead of banning foreign travel, non-filers should be prohibited from withdrawing funds from banks until they pay the 30% tax and become filers. He highlighted that the government has already imposed taxes worth Rs 2 trillion on the general public and must reduce its expenditures by 4.33% of the GDP, presenting this plan in the National Assembly. Additionally, he proposed terminating agreements with Independent Power Producers (IPPs) and introducing an usher system to tax agricultural income instead of burdening the salaried class and exporters.

Atif Ikram Sheikh criticized the concept of late-filers and non-filers, insisting that everyone should be a filer. He proposed a simplified tax return form, potentially increasing the number of return filers to 50 million. He also rejected the Finance Bill proposal that suggested punishments up to 10 years and non-bailable offenses for businessmen involved in fraudulent activities, advocating instead for a more respectful tax culture.

The FPCCI rejected the change in the tax regime for exporters and the proposal of 5% federal excise duty on commercial properties and first sales of residential properties, arguing that FED is a federal subject. The Anomaly Committee recommended restoring the zero-rating regime on petroleum products to enable the adjustment of input sales tax and maintaining exemptions on medical supplies to charitable hospitals.

On this occasion, key FPCCI officials including Pattern Chief UB SM Tanveer, Senior Vice President Saqib Fayyaz Magu, Vice Presidents Zaki Ejaz, Tariq Jadoon, Aoun Ali Syed, Capital Office Chairman Karim Aziz Malik, Coordination Chairman Malik Sohail Hussain, Mian Zahid Hussain, Ahmed Jawad, Habibullah Zahid, and others were present.