The Federal Board of Revenue (FBR) of Pakistan has imposed strict penalties on those who do not submit their tax returns, often known as non-filers, with the aim of enhancing tax compliance and augmenting revenue. These steps demonstrate the FBR’s dedication to upholding tax regulations and making sure that every taxable person pays their fair part into the national coffers.
Initiative to Block SIM Cards
Working with telecom operators to restrict non-filers’ Subscriber Identity Module (SIM) cards is one of the FBR’s most important initiatives. The purpose of this approach is to make non-compliant taxpayers complete their tax responsibilities by upsetting their daily life.
SIM Cards: Blocked and Unblocked
Telecom firms have disabled 230,000 non-filers’ SIM cards on the FBR’s request, indicating the stringent measures used to guarantee tax compliance.
76,636 of these SIMs were remarkably unblocked once the corresponding persons filed their tax returns. This demonstrates how well the program works to encourage non-filers to adjust their tax status.
Provision of Daily Data
Additionally, the Pakistan Telecommunication Authority (PTA) receives data from the FBR on 5,000 non-filers each day for SIM blocking. This proactive strategy strengthens the message that tax evasion will not be allowed by ensuring ongoing monitoring and action against non-compliant taxpayers.
Investigation-Proof Blocking
This initiative’s novel approach is to restrict SIMs before a formal investigation is carried out. This preventive action encourages faster resolution and compliance from non-filers by acting as an immediate punishment for non-compliance.
An explanation of non-filers
It’s critical to comprehend who falls under the definition of a non-filer in order to dispel any confusion:
Population Proportion: Of the 250 million people living in Pakistan, just 2.5 million do not file taxes, meaning that the great majority of people follow the law.
Exclusions: To guarantee that the measures only affect people with taxable income who are not completing their tax returns, household women and students who carry a CNIC are not included in the non-filer category.
Extra Actions
The FBR is thinking of taking more measures to compel tax compliance in addition to SIM blocking:
Travel Restrictions: In order to keep non-filers from traveling overseas, the FBR intends to send a list of them to the Federal Investigation Agency (FIA). This action demonstrates the importance of tax compliance and the FBR’s commitment to making sure all qualified people file their taxes.
Budget Proposals: As part of a comprehensive plan to improve revenue collection, the federal government has suggested steep taxes and other measures in the 2024–25 budget to deal with non-filers.
In Summary
These steps demonstrate the FBR’s efforts to target non-filers with tactics like SIM blocking and travel restrictions in order to ensure tax compliance and raise revenue. The cooperation with PTA and telecom providers, in addition to the FIA’s anticipated engagement, shows that there are several different strategies being used to guarantee tax compliance. The FBR’s actions are a step in the right direction toward Pakistan’s more stable and open tax system, which will ultimately support the stability and expansion of the economy of the nation.
