Islamabad, October 21, 2024 – In a bold move aimed at streamlining tax compliance and broadening the tax net, Finance Minister Mohammad Aurangzeb has announced that the government is drafting legislation to eliminate the category of non-filers from the Income Tax Ordinance, 2001. This step, long demanded by fiscal reform advocates, is expected to create a more transparent and accountable taxation system in Pakistan. During a Senate session on Sunday, Aurangzeb emphasized that non-compliant individuals will face stringent penalties as prescribed under the Income Tax Ordinance. “The concept of non-filers will no longer exist,” he asserted, highlighting that the new legislation will introduce harsher penalties for those who fail to comply with tax regulations. The government’s initiative is aimed at closing tax loopholes and enhancing revenue collection. Reports also indicate that the Federal Board of Revenue (FBR) is drafting a comprehensive bill to abolish both non-filers and late-filers categories, addressing a long-standing gap in the country’s taxation framework. The category of “late-filer,” introduced through the Finance Act of 2024, is already being contested in the Lahore High Court. The new legislation is expected to create an equitable system where every individual engaged in significant financial transactions, such as purchasing properties or vehicles, will be required to declare their sources of income. Under the proposed law, if a tax-compliant filer can justify their sources of income, their immediate family members—including spouses, parents, and dependent children—would not be required…