ISLAMABAD: Non-filers of income tax returns in Pakistan are on the brink of losing their mobile phone and electricity connections after the looming deadline of October 31, 2023.
Failure to meet this national tax obligation will result in various repercussions, including the disconnection of vital services.
Sources within the Federal Board of Revenue (FBR) have confirmed that individuals who do not comply with the income tax requirements are at risk of losing their mobile phone connections and electricity services. This stern measure is empowered by Section 114B of the Income Tax Ordinance, 2001, which authorizes tax authorities to enforce the filing of income tax returns.
Section 114B allows the FBR to issue an income tax general order for individuals not appearing on the active taxpayers’ list but who are obligated to file a tax return under the provisions of the ordinance. This general order may entail one or more of the following consequences for those listed within:
(a) Disabling of mobile phones or mobile phone SIM cards;
(b) Discontinuance of electricity connection; or
(c) Discontinuance of gas connection.
The Board or the Commissioner with jurisdiction over the person listed in the income tax general order may order the restoration of mobile phones, SIM cards, and electricity and gas connections under specific circumstances, such as:
(a) The return has been filed; or
(b) The person was not liable to file a return under the provisions of the ordinance.
To be included in the general order, certain conditions must be met, including:
(a) Issuance of a notice under sub-section (4) of Section 114;
(b) Expiration of the compliance date mentioned in the notice under sub-section (4) of Section 114; and
(c) Failure by the person to file the required tax return.
It is important to note that the action taken under this section does not preclude any other actions provided under the provisions of the ordinance, which means that there may be additional consequences for non-compliance.
This initiative by the government aims to enhance tax compliance and revenue collection, which are crucial for the country’s economic development and stability. The impending deadline serves as a stern reminder for individuals to fulfill their national duty by submitting their income tax returns before October 31, 2023, to avoid the inconvenience and potential penalties associated with the disconnection of mobile and electricity services.
As the deadline approaches, taxpayers and non-filers are urged to take immediate action to ensure their tax returns are filed and their obligations are met, preventing any disruption to their essential services and maintaining their legal status. This effort also aligns with the government’s broader mission to create a more transparent and accountable tax system, benefiting both the state and its citizens.
