KARACHI – Tax evasion continues to dent economic development, but now Pakistani authorities are taking stern measures to curb losses worth billions.
In latest move to boost tax compliance, Federal Board of Revenue (FBR) is set to block around 5lac SIM cards of individuals who failed to file tax returns.
The action will be taken against 4lac individuals who have partially complied and one lac who have not complied at all. The tax dodgers were identified in bid to expand the tax base.
FBR said these individuals have not yet filed their returns, despite multiple warnings. The department is now chalking out strategy to issue an Income Tax General Order (IGTO) after Eid to start the SIM blockage.
Meanwhile, telcos expressed concerns about the potential impact of widespread SIM deactivations. At first, the country’s apex tax collection authority identified 20lac potential non-compliant individuals, but after consultations, it decided to limit the first phase to 500,000 SIM blocks.
Federal Board of Revenue is using its legal authority under the Income Tax Law 2023, which allows it to disconnect mobile, electricity, and gas services for non-compliance.
However, services can be restored upon demonstrating compliance or if it is established that the individual was not required to file a return. The desperate strategy is part of FBR’s broader efforts to enforce tax laws and promote compliance, highlighting the importance of filing returns and maintaining active taxpayer status.
No more gas, electricity and SIM facilities for non-filers, announces FBR
