Thursday, November 30, 2023

Pakistan to Block Sims, Cut Off Electricity, Gas Connections of Non-Filers

Pakistan’s main tax collection authority, the Federal Board of Revenue (FBR), has set ambitious goals for the current fiscal year to broaden the base of taxpayers in accordance with discussions with the International Monetary Fund (IMF).

To enforce these goals, the FBR has devised stringent measures, including the potential cutting of electricity and gas connections, as well as blocking mobile SIM cards for individuals who fail to file income tax returns.

In recent meetings, the interim government considered strategies to increase the number of tax filers and overall revenue. As part of this restructuring effort, the FBR has established 145 District Tax Offices, aiming to bring an additional 2 million taxpayers into the system by June 2024.

According to a press release, the Income Tax Ordinance of 2001 grants the FBR the authority to disconnect utility services, such as electricity and gas, for non-taxpayers. Additionally, mobile SIM cards of individuals who do not file their income tax returns may be blocked. These measures are intended to encourage compliance with tax regulations and expand the tax base, aligning with the objectives set during discussions with the IMF.

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