Govt to dam cell phone SIMs of over 500,000 non-filers

In a press release, the Federal Board of Income (FBR) mentioned: “In train of the powers conferred underneath part 114B of the Revenue Tax Ordinance, 2001, the FBR is happy to concern this Revenue Tax Basic Order (ITGO) to disable the cell phone SIMs in respect of following individuals who aren’t showing on lively taxpayer record however are liable to file the Revenue Tax Return for Tax Yr 2023 underneath the provisions of the Revenue Tax Ordinance, 2001.

The event got here a day after Prime Minister Shehbaz Sharif hinted at enterprise “large financial reforms” on the particular assembly of the World Financial Discussion board (WEF) in Riyadh, Saudi Arabia.

Talking on the closing plenary of a particular assembly of the WEF, the premier vowed to introduce deep-rooted reforms and undertake significant austerity to steer the nation out of the financial disaster.

The FBR requested the PTA and all telecom operators to make sure compliance with the Revenue Tax Basic Order (ITGO) with instant impact.

“The cellular SIMs in respect of the above-mentioned people will stay blocked till restored by FBR or the Commissioner Inland Income having jurisdiction of the individual.”

The tax assortment physique additional mentioned: “The compliance report on this regard is to be furnished to the FBR on Could 15.”

The FBR made public the names of 506,671 non-filers and mentioned that these people weren’t submitting revenue tax returns regardless of having taxable revenue.

The cellular SIMs of those people might be blocked at any time, the FBR added. These people aren’t included within the record of lively taxpayers, learn the assertion.

The highest tax assortment physique additional mentioned that the “strategic step” exhibits its dedication to tax compliance amongst taxpayers. The target behind the transfer is to strengthen the tax base with the assist of involved state holders, the FBR added.

“The FBR is dedicated to selling a simply, honest and uniform tax system within the nation.”

It additional mentioned that the non-filers might get their cell phone SIMs restored by submitting their tax return for the 12 months 2023.

It’s pertinent to say right here that the tax assortment physique, final 12 months, secured extra powers in a bid to extend the tax web and was authorised, underneath Part 114B within the Revenue Tax Ordinance 2001, to disconnect utility connections and block cellular SIMs if a return just isn’t filed in response to notices issued to them.

In November 2023, as many as 145 district tax places of work throughout the nation had been established as a part of restructuring measures to convey 1.5 to 2 million new taxpayers into the tax web until June 2024.

Moreover, the FBR has additionally held consultations with the PTA to determine SIMs of under-filers who didn’t file their returns regardless of possessing taxable and duly being notified by the physique who was in possession of their transaction information.

“We’ve finalised particulars of this stringent motion in opposition to alleged tax evaders and their SIMs of cellphones could be blocked by April 2024,” one prime official had informed The Information earlier this month.

Sources mentioned though the FBR had recognized two million potential tax dodgers, it was determined that out of them solely 0.5 million SIMs could be blocked within the first part because of the considerations raised by telecom firms over the feasibility of blocking SIMs in such massive numbers.

It’s pertinent to know that the FBR obtained whole revenue tax returns of 5.9 million within the tax 12 months 2022, nevertheless it dropped to 4.2 million within the tax 12 months 2023 until March 2024 in keeping with the Lively Taxpayers Checklist (ATL) as round 1.8 million didn’t file their returns.

Final month, the federal government in its bid to broaden the tax base, commenced the registration of merchants for its Tajir Dost Scheme in its bid to rope in 5 main classes of merchants into the tax web.

Titled “Tajir Dost Scheme”, the transfer will give attention to wholesalers, sellers, retailers, furnishings and ornament showrooms, jewellers, cosmetics shops, grocery, medical and {hardware} shops, meat outlets, greens and fruits retailers, motorized vehicle showrooms, fertiliser, pesticide and chemical sellers in Karachi, Lahore, Peshawar, Quetta Islamabad and Rawalpindi.

The scheme which kicked off earlier this month will see the tax assortment set to come back into impact from July 1. Merchants who fail to register by the April 30 deadline, will face financial penalties underneath part 182 of the Revenue Tax Ordinance 2001.