Pakistan
FBR establishes 145 district tax offices across country to increase tax net
Electricity and gas connections of those who do not file tax returns will be cut off and mobile SIMs will also be blocked.
Islamabad: The Federal Board of Revenue has established one hundred and forty-five district tax offices across the country to increase the tax net.
The newly established offices will work to bring two million new taxpayers into the tax-net by June 2024.
Electricity and gas connections of those who do not file tax returns will be cut off and mobile SIMs will also be blocked.
Caretaker Prime Minister Anwaarul Haq Kakar emphasized the importance of revenue and the need to increase the number of tax filers during recent meetings.
The FBR board officially announced the creation of district tax offices, a strategic initiative aimed at expanding the tax base and ultimately achieving the desired tax-to-GDP ratio.
These offices will be led by District Tax Officers responsible for compelling Income Tax Returns from non-filers and stop-filers, as outlined in a press release.
The establishment of these offices marks a significant step toward expanding the tax net to address a crucial tax gap, bringing all potential taxpayers into the system, according to the statement.
The newly formed offices, headed by dedicated Inland Revenue Officers in BS-17/18, will utilize third-party data from various departments and agencies to gather critical information on investments and expenditures by potential taxpayers who have so far evaded the taxation system.
One tool to be employed is the recently introduced section 114B in the Income Tax Ordinance, 2001, authorizing the department to disconnect utility services and block mobile SIMs if non-filers do not respond to issued notices.
The federal government has pledged full support and assistance to the FBR, including the introduction of a new documentation law obligating agencies to provide data through an automated common transmission system.
Collaboration with the National Database and Registration Authority (NADRA) has been initiated, with Chairman NADRA assuring support for widening the tax base through Data Integration.