FBR: SIMs & Utility Connections for Non-Filers To Face Blockage From This Month

The head of the Federal Board of Revenue (FBR), Amjed Zubair Tiwana, shared important information about upcoming actions. He mentioned that starting in January 2024, mobile phone SIMs and utility connections of non-filers will be blocked.

Tiwana informed a group of journalists that notices were sent out, and the last date to respond was December 28–29, 2023. After this, a general order will be issued, listing the names of non-compliant non-filers. Their electricity and gas connections might be disconnected as a legal requirement following the notices. Additionally, their mobile phone SIMs may also be blocked.

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There’s a new Anti-Benami Adjudicating Authority in the works, with a summary sent to the federal cabinet for the appointment of two members. Once the cabinet approves it, Tiwana mentioned that this authority will soon be operational. Discussing tax administration reforms, Tiwana revealed a proposal to establish a separate Customs Board, distinct from the Inland Revenue Service. The government is considering this proposal.

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A pilot project for digital invoicing in the fast-moving consumer goods sector is set to launch in January 2024. Under the FBR’s electronic sales tax integration system, all relevant entities will operate. Tiwana expressed confidence in adding 1.5 million new filers to the tax net. Limited resources have been a significant obstacle for the FBR, but Tiwana anticipates increased revenue collection once ample resources are available.

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He expects a boost in revenue collection in the second half (January–June) of 2023–24. It is based on the momentum from the previous fiscal year. It is noteworthy that the total collection that occurred in the first half of 2022–23 was 45%. The FBR chairman highlighted the substantial increase in tax collection through efforts in advance taxes and assessments during the first six months of 2023–24.