The move follows Pakistan's agreement with the International Monetary Fund on a $3 billion bailout.
ISLAMABAD: (UrduPoint/Pakistan Point News-Nov 18th, 2023) The Federal board of Revenue (FBR) has gained enhanced authority to expand the tax base, allowing the disconnection of utility services and blocking mobile SIMs for non-filers in response to notices.
This move follows Pakistan's agreement with the International Monetary Fund on a $3 billion bailout.
With only 4.9 million return filers out of a 240 million population last fiscal year, the FBR aims to identify potential non-filers and tax evaders.
The restructuring includes establishing 145 district tax offices nationwide, aiming to bring 1.5 to 2 million new taxpayers into the system by June 2024.
Prime Minister Anwaar-ul-Haq Kakar emphasized revenue importance in recent meetings. The FBR, through these measures, seeks to raise the tax-to-GDP ratio, employing tools such as Section 114B in the Income Tax Ordinance 2001 to disconnect utilities and block mobile services for non-compliance.
Besides it, a new Documentation Law will compel agencies to provide data to the FBR through an automated system.
