Pakistan to cancel passports of tax dodgers

In a bid to widen the tax base, the Federal Board of Revenue (FBR) in Pakistan has put up two tax amnesty schemes to the finance ministry for approval.

However, there was a catch for tax dodgers who fail to avail the opportunity of obtaining clean slates and join the tax net -  they now face the risk of their National Identity Cards (NICs) and passports getting invalidated and their bank accounts frozen.

In a briefing to the Senate Standing Committee on Finance, chaired by senator Nasreen Jalil, FBR senior member Inland Revenue Service Asrar Rauf said delinquent taxpayers would be able to benefit from these two schemes up to 31 December this year, in the event of the finance ministry approving them.

Rauf said if the people did not avail the schemes they might face cancellation of their National Identity Cards (NICs) and passports, and freezing of their their bank accounts.

It is expected that the FBR scheme would encourage non-taxpayers to pay their due tax, and bring a huge number of people into the tax net with the expected revenue estimated at Rs196 billion.

Also, Rauf told the committee that tax authorities had already identified 1.78 million families across the country that undertook frequent foreign travels, spent huge amounts on their utilities and other functions. He said the families would be able to legalise their hidden assets with the amnesty schemes, after paying Rs40,000 and registering as taxpayers.