The Federal Board of Revenue (FBR) has confirmed that it will take stringent actions, such as disconnecting utility services like electricity and gas connections and blocking mobile SIMs, for individuals who do not file their tax returns after receiving issued notices.
The FBR, as the leading tax authority, emphasized the implementation of section 114B in the Income Tax Ordinance, 2001, granting it the authority to initiate such measures against those who neglect to submit their tax returns.
In a move towards restructuring, the FBR has instituted 145 District Tax Offices, aiming to incorporate 1.5 to 2 million new taxpayers into the tax system by June 2024. The Prime Minister has underscored the significance of revenue generation and the need to increase the number of tax filers in recent meetings.
The establishment of these offices, a novel initiative, is poised to broaden the tax base, ultimately elevating the tax-to-GDP ratio to the desired level. Each office will be led by a District Tax Officer responsible for enforcing Income Tax Returns among non-filers and those who have ceased filing.
This development marks a significant step forward, aiming to bridge a critical tax gap by bringing all potential taxpayers into the tax net. The newly formed offices will be overseen by dedicated Inland Revenue Officers in BS-17/18, leveraging third-party data acquired from various departments and agencies containing crucial information about potential taxpayers’ investments and significant expenditures. This will target individuals who have thus far evaded the taxation system, including registration and filing of tax returns.
The FBR also mentioned the introduction of a new Documentation Law, requiring various agencies and departments to furnish data to the FBR through an automated common transmission system. Collaborative efforts with the National Database and Registration Authority (NADRA) have been initiated, with the NADRA Chairman pledging assistance to the FBR in widening the tax base through Data Integration.
This comprehensive initiative not only reinforces the FBR’s capacity to enforce tax laws but also aims to facilitate taxpayers in the filing process by establishing dedicated offices.
Read more: NADRA Launches Special Helpline and Doorstep Facility in Islamabad.
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