Nationwide Crackdown | FBR to Block Mobile SIMs of Tax Non-Filers After Eid

The Federal Board of Revenue (FBR) has revealed plans for a thorough crackdown on non-filers starting in April 2024 in an audacious attempt to improve tax compliance and revenue collection. This program which entails the barring of almost 0.5 million SIM cards from noncompliant people, is a big step in the right direction for improving the nation’s tax enforcement policies.

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Overview of the Crackdown:

  • Following the Eid holiday, the FBR will release an Income Tax General Order (IGTO) detailing the actions to be taken against non-filers.
  • The FBR seeks to locate and pursue 400,000 under-filers who have disregarded their tax duties, with support from the Pakistan Telecommunication Authority (PTA).
  • Additionally, the FBR’s Broadening Tax Base (BTB) project will identify an additional 100,000 non-filers.

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Legal Basis and Consequences:

  • Section 114(B) of the Income Tax Law 2023, which gives the FBR the authority to demand return filing, provides the legal basis for this action.
  • The clause specifies consequences, such as turning off SIM cards or cell phones and cutting off service connections.

Opportunity for Compliance:

  • After filing their taxes or confirming their exemption, those impacted by the crackdown will be able to get their electric connections and cell services back.
  • The FBR underlined how important it is to take this step to guarantee tax compliance and systemic justice.

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The FBR hopes that by enforcing this crackdown, people would be more inclined to follow tax laws and take responsibility for their finances, which will help the nation’s economy flourish.
This program demonstrates the FBR dedication to promoting an open and responsible tax system, which will ultimately be advantageous to the entire country.