The Federal Board of Revenue (FBR) of Pakistan reports progress in its efforts to expand the tax base. Here's a summary of the key developments:
- Tax Filings Increase: The FBR claims that nearly 50,000 individuals filed their tax returns for 2023 after their mobile SIM cards were blocked or retailers were registered under a new program.
- Enforcing Tax Laws: The government is implementing a new regulation that allows blocking mobile SIMs of non-tax filers and requires retailers to register under the Tajir Dost Scheme (TDS). This empowers the FBR to potentially suspend cellular services for those who haven't filed their taxes.
- Blocking SIMs: Since mid-May, the FBR has shared information on around 165,000 non-filers with major telecom companies (Telenor, Ufone, and Jazz) for potential SIM blocking. The exact number of affected SIM cards remains unclear.
- Tax Returns Increase: A senior tax official claims the department received over 41,000 additional income tax returns for 2023 after the SIM blocking initiative began.
- Phased Blocking: The FBR shared the non-filer data with telecom companies in batches to manage the process.
- Penalties for Non-Compliance: The Finance Bill 2024 includes penalties for telecom operators who fail to cooperate with the FBR's blocking orders.
- Legal Challenge: Zong, telecom company, challenged the Income Tax General Order No. 1 (ITGO-No1) in the Islamabad High Court, seeking a stay on its implementation.
The FBR's initiative appears to be encouraging some non-filers to comply with tax regulations. However, the effectiveness of the program and potential legal challenges remain to be seen.
Registered Taxpayers who have NTN and filed to file Tax Return of Tax Year 2023 in advance so that they dont face inconvenience of Sim Services blockage.
