Sim cards of Non-Filers will be blocked soon

The Federal Board of Revenue (FBR) has made the decision to block 0.5 million SIM cards from non-filers’ mobile phones in an effort to initiate a strict campaign against non-filers in April 2024. 

In light of this, right after Eid, the FBR would release an Income Tax General Order (IGTO).

The Pakistan Telecommunication Authority (PTA) would lend support to the FBR in identifying the 400,000 under-filers who choose not to file their returns. Furthermore, the FBR’s Broadening Tax Base (BTB) project will identify 100,000 non-filers, and their SIMs would be dysfunctional.

According to the Active Taxpayers List (ATL), the FBR received 5.9 million income tax returns in total in tax year 2022. However, this number decreased to 4.2 million in the tax year 2023 until March 2024. Roughly 1.8 million people failed to file their taxes.

The FBR was authorized by Income Tax Law 2023 Section 114(B) to compel return submission. It reads as follows: 

“(1) The Board (FBR) shall have the powers to issue income tax general orders with respect to individuals who are not listed on the active taxpayers’ list but are required to file a return under the provisions of the Ordinance, notwithstanding anything contained in any other law currently in effect.”

“(2) For the individuals listed therein, the income tax general order issued under sub-section (1) may result in any or all of the following actions: 

(a) turning off cell phones or SIM cards; 

(b) cutting off the electricity or gas supply; or 

(c) canceling the gas connection.”

“(3) In situations where he is satisfied that either 

(a) the return has been filed or 

(b) the person was not required to file a return under the terms of the Ordinance, the Board or the commissioner having jurisdiction over the person named in the income tax general order may order the restoration of mobile phones, mobile phone SIMs and connections of electricity and gas.”

“(4) No person shall be included in the general order under sub-section (1) unless the following requirements are satisfied: 

(a) notice under sub-section (4) of section 114 has been issued; (ii) utility connections; (iii) business premises, including all manufacturing, storage, or retail outlets operated or leased by the taxpayer; (iv) types of businesses; and (v) such other information as may be prescribed; 

(b) shall be signed by the person, if the person is an individual, or the person’s representative in the case that section 172 applies; and 

(c) shall be filed electronically on the website designated by the Board.”

“(5) If a person is registered under section 181 before the 30th day of September 2020, their taxpayer profile must be provided, 

(a) on or before the 31st day of December 2020; 

(b) within ninety days of registration if they are not registered. 

(c) The notice’s compliance date under section 114, subsection (4), has passed; and 

(d) The individual has not submitted the return.”

“(6) The action taken under this section shall not bar any other action taken under the terms of the Ordinance, the statement said at the end.”

Non-filers are urged to file their tax returns promptly to avoid disruption in their mobile phone services. 

Hurry Up! If you don’t want to lose your mobile sim, electricity, and water connection. Then, now is the time to take action and save your valuables.  

Click on this link. Befiler is here to make you a tax filer in just six minutes.

The deadline is approaching fast, and those who fail to comply will face the consequences. Stay tuned for further updates!