The Federal Board of Revenue (FBR) has taken a resolute stance by introducing stringent measures to ensure tax compliance. As per the recent amendment in the Income Tax Ordinance, 2001 (section 114B), the FBR is now authorized to take drastic actions against individuals failing to file their tax returns.
These measures include the disconnection of utility services such as electricity and gas connections, along with the blocking of mobile SIM cards for those who disregard notices and fail to submit their tax returns in response.
In a bid to overhaul its structure and bolster tax compliance, the FBR has initiated the establishment of 145 District Tax Offices. The primary objective of these offices is to significantly expand the taxpayer base by bringing in approximately 1.5 to 2 million new taxpayers into the tax net by June 2024.
This restructuring aligns with the Prime Minister’s emphasis on augmenting revenue and enhancing the count of tax filers, highlighting the critical importance of these initiatives in recent high-level discussions.
The newly established District Tax Offices will be helmed by District Tax Officers, entrusted with the crucial responsibility of enforcing Income Tax Returns from non-filers and encouraging consistent tax compliance from existing filers.
This strategic move not only aims to broaden the tax base but also endeavors to elevate the tax-to-GDP ratio to meet the targeted objectives, paving the way for a more robust and sustainable fiscal landscape.
The FBR’s decisive measures underscore the government’s commitment to enhancing tax compliance, fostering a culture of accountability, and fortifying the country’s fiscal framework for sustainable economic growth.