Tax authorities can disable mobile SIMs, disconnect electricity and gas supplies, and restrict foreign travel under Section 114B of the Income Tax Ordinance, 2001, subject to prescribed conditions and exemptions.
Islamabad, November 2, 2026: The Federal Board of Revenue (FBR) is set to initiate enforcement action against individuals and businesses liable to file income tax returns for tax year 2026 but missing from the Active Taxpayers List (ATL) 2026.
The FBR issued the latest ATL on Monday, containing the names of individuals, companies and associations of persons that filed their income tax returns by the October 31, 2026 deadline.
READ MORE: FBR releases ATL 2026 with record 8 million income tax filers
Under Section 114B of the Income Tax Ordinance, 2001, the tax authority can issue an income tax general order against persons who are liable to file returns but do not appear on the Active Taxpayers List.
The provision, included in the Income Tax Ordinance updated up to June 30, 2026, for tax year 2027, empowers the FBR to impose several restrictions on identified non-filers.
These enforcement measures include:
• Disabling mobile phones or mobile phone SIMs.
• Discontinuing electricity connections.
• Discontinuing gas connections.
• Restricting foreign travel by Pakistani citizens.
However, the foreign travel restriction does not apply to holders of National Identity Cards for Overseas Pakistanis (NICOP), minors, students, individuals travelling for Hajj or Umrah, and other exempted categories notified by the FBR.
Conditions for Enforcement Action
Section 114B also specifies conditions that must be fulfilled before a person can be included in an income tax general order.
The FBR must first issue a notice under Section 114(4) of the Income Tax Ordinance. The compliance deadline mentioned in the notice must expire, and the taxpayer must still have failed to submit the required return.
The Board or the relevant Commissioner can order the restoration of mobile phone services, SIMs, electricity and gas connections if the taxpayer subsequently files the return or establishes that they were not legally required to submit one.
The law further clarifies that enforcement under Section 114B does not prevent the FBR from taking other legal action available under the Income Tax Ordinance, 2001.
The provision gives the tax authority additional powers to pursue individuals and businesses who fail to fulfil their income tax return filing obligations.
READ MORE: FBR ATL 2026: How to check your active taxpayer status online and by SMS