Non-filers to face electricity, gas disconnection: FBR

Islamabad: Non-filers could face the disconnection of utility services such as electricity and gas, along with the blocking of mobile SIMs if they fail to file their returns in response to issued notices, according to a statement from the Federal Board of Revenue (FBR).

As part of its restructuring efforts, the FBR has established 145 District Tax Offices with the goal of incorporating 1.5 to 2 million new taxpayers into the tax net by June 2024.

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.