FBR: Non-Filers To Face Utility Disconnections

Non-filers will have their utility connections disconnected, like their gas and electricity, and their cell phones will stop working if they don’t file returns after being sent notices. The Federal Board of Revenue (FBR) has set up 145 District Tax Offices as part of reorganization plans. These offices will help 1.5 to 2 million more people pay their taxes until June 2024.

During recent talks, Caretaker Prime Minister (PM) Anwaarul Haq Kakar talked about how important it was to bring in more money and get more people to pay their taxes. The FBR board has announced the new project of establishing district tax offices, which will assist in extending the tax base and ultimately raise the tax-to-GDP ratio to the optimal level.

According to a press release, the offices would be led by District Tax Officers who would be given the job of enforcing Income Tax Returns from non-filers and stop-filers in the respective jurisdictions. According to the statement, the opening of these offices marks the beginning of a new era that will herald an expansion of the tax net that will fill an essential tax void on the way to the goal of bringing all potential taxpayers into the tax net.

Inland Revenue Officers in BS-17/18 would be in charge of the new offices, and they would be responsible for collecting and utilizing data obtained from third parties. This data would come from a variety of government departments and agencies, and it would contain essential information regarding potential taxpayers who, up until this point, have been able to avoid the taxation system and have not registered or filed tax returns.

Here’s How To Become a Tax Filer in Pakistan

Section 114B of the Income Tax Ordinance, 2001, which was recently introduced, could be implemented to achieve this objective. This provision grants the department the authority to disable utility connections, such as those for electricity and gas, as well as to block mobile SIMs, in the event of non-filers whose returns are not filed in response to issued notices.

It further stated that the federal government is dedicated to employing every available measure and offering aid to FBR. Also, new laws about paperwork are being considered. These laws will require different government departments and agencies to send information to the revenue board through an automated system.

Additionally, efforts have been made to secure cooperation and support from the National Database and Registration Authority (NADRA). The chairman of NADRA has assured the FBR of NADRA’s support for the effort to increase the tax base through data integration.

According to the statement, the effort would not only improve the FBR’s ability to enforce tax rules, but it would also make it easier for taxpayers to file their tax returns by establishing offices that are solely devoted to that task.

Check out why being a tax filer in Pakistan matters.