ISLAMABAD: As a last resort to bring more people under the tax net, the Federal Board of Revenue (FBR) has decided to sever electricity and gas connections of non-filers of income tax return.
In this regard, the FBR said that notices would be issued to all the non-filers to file their returns within a given deadline. If they failed to do so, their electricity and gas connections would be severed. Moreover, all mobile SIMs issued in their names would also be blocked.
The FBR is planning to bring about two million people under the tax net by June 2024, and NADRA has assured it of its cooperation as regard to data of the citizens.The FBR has notified the establishment of district tax offices, a new initiative to broaden the tax base.
The new offices would be headed by dedicated Inland Revenue Officers in BS-17/18 which would obtain and utilize third-party data acquired from multiple departments and agencies that hold critical information regarding investment in assets and incurring of huge expenditures by potential taxpayers who till now have managed to escape and stayed away from the taxation system including registration and filing of tax returns.
According to a report, one of the tools to be utilized for this purpose would be invoking recently introduced section 114B in the Income Tax Ordinance, 2001 which authorizes the department to disconnect utility connections including electricity and gas connections and blocking of mobile SIMS, if return is not filed in response to notices issued.
A new documentation law is also being introduced to obligate various agencies and departments to provide data to the revenue board through automated common transmission system.