Blocking SIMs of Non-Compliant Individuals: FBR Tax Enforcement Initiative

Mohsin Siddiqui (Chief Reporter) 

The Federal Board of Revenue (FBR) in Pakistan has initiated a significant move aimed at enhancing tax compliance and enforcing adherence to the Income Tax Ordinance of 2001. Through the issuance of an Income Tax General Order (ITGO), the FBR targets individuals not appearing on the active taxpayer list yet obligated to file Income Tax Returns for Tax Year 2023 (TY 2023).

Under the authority bestowed by section 114B of the Income Tax Ordinance, 2001, the FBR has taken resolute action by ordering the disabling of mobile phone SIMs associated with 506,671 individuals falling under the specified category. This proactive measure seeks to motivate individuals to meet their tax obligations, thereby contributing to the economic development of the nation.

Key Points of the Income Tax General Order (ITGO):

  1. Disabling Mobile Phone SIMs: The ITGO mandates the blocking of SIM cards linked to the specified individuals’ Computerized National Identity Cards (CNICs). Only restoration by the FBR or the Commissioner Inland Revenue with jurisdiction over the individual can lift the block.
  2. Immediate Enforcement: The Pakistan Telecommunication Authority (PTA) and telecom operators have been directed to promptly implement the ITGO, ensuring swift execution of the order.
  3. Compliance Reporting: Telecom operators are obligated to furnish a compliance report to the FBR by May 15, 2024, enhancing transparency and accountability in the enforcement process.

This strategic initiative underscores the FBR’s commitment to nurturing a culture of tax compliance and accountability among taxpayers. By employing enforcement measures and fostering collaboration with relevant stakeholders, the FBR endeavors to fortify the tax base and cultivate a fair and equitable tax system for the nation’s benefit.

The FBR urges all individuals to promptly address their tax obligations by filing their income tax returns for Tax Year 2023. Correct declarations are essential to restoring mobile phone services in compliance with the ITGO.

In conclusion, this initiative reflects the FBR’s proactive stance in enforcing tax compliance, thereby bolstering the nation’s economic framework and fostering fiscal responsibility among citizens.

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