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Thursday November 21, 2024

No more non-filers

By News Desk
October 15, 2024
No more non-filers

This letter refers to the news report ‘FBR to abolish non-filer category, tightens curbs on tax dodgers’ (September 25, 2024). This move is part of a broader strategy to enforce stricter rules on those who don't file tax returns. The non-filer category was introduced as an attempt to incentivize individuals to become tax filers by imposing higher taxes on non-filers for certain transactions, but it badly failed to achieve its objectives. It is important to understand the reasons why people would rather pay higher tax instead of filing tax returns. The complex procedures, fear of being harassed by tax officials, audits and inspections, perception of government corruption and misuse of funds, and lack of tangible benefits discourage people from becoming tax filers. An easier and user-friendly tax filing system such as through mobile apps or ATM-style submission centres would help. Flat tax rates or unified tax brackets for certain income levels could eliminate complicated calculations and deductions. Tax officials must also be subject to scrutiny from independent bodies, minimizing opportunities for bribes or misconduct.

Sajid Awan

Dubai