No More ‘Late Filers’: FBR Introduces New Law to Monitor High-Value Transactions

Islamabad: In a groundbreaking move, the Federal Board of Revenue (FBR) has drafted a new law aimed at simplifying the tax filing process by abolishing the categories of “late filers” and “non-filers” from the Income Tax Ordinance 2001. The new legislation requires taxpayers to declare their sources of income for significant financial transactions, including the purchase of properties and vehicles.

Under the proposed law, filers must justify the sources of income for themselves and their family members, who may not necessarily need to be filers themselves. Financial transactions, such as buying vehicles above 1300 cc or property worth over Rs. 1 crore, will be closely monitored by the FBR.

A key feature of the new framework is a mobile app for public resource declaration, allowing taxpayers to file sources of income digitally without the need for exemption certificates. Financial transactions above a certain threshold will be reported to the FBR, and incentives will be introduced to encourage taxpayer compliance.