Karachi, January 11, 2024 – In a bold move to bolster tax compliance, the Federal Board of Revenue (FBR) has embarked on the disconnection of phone, gas, and electricity services for individuals who have failed to file their income tax returns.
The FBR, through nationwide notices, has granted a final chance to non-filers to rectify their status before facing the consequences of utility cutoffs.
The FBR sources have confirmed that the implementation of the disconnection process has commenced, targeting non-filers across the country. The revenue body aims to enforce compliance with income tax regulations by blocking mobile SIM cards and phones, as well as disconnecting electricity and gas connections for those who remain non-compliant.
The government initially issued notices to individuals throughout the country, providing a one-month grace period for them to adhere to the income tax filing requirements. The deadline for responding to the initial notices lapsed on December 28, 2023. Following this, final notices have been served to those who have yet to file their income tax returns.
One of the notices sent to non-filers explicitly warned, “You were issued notice under section 114B to file a return, non-compliance results in disconnection of electricity, gas & mobile connections. Please file the return immediately.” This stern message underscores the gravity of the situation faced by non-filers.
Sources within the FBR indicate that strict measures are on the horizon for those who continue to flout tax obligations. The first phase of the enforcement involves the blocking of mobile SIM cards and mobile phones. An Income Tax General order is expected to be issued by the FBR during January 2024, formalizing the process.
Moreover, the FBR has outlined a strategy to disconnect electricity and gas connections for non-filers, expanding the scope of repercussions for non-compliance. As the government takes a proactive stance against tax evasion, the FBR is set to intensify efforts to ensure that citizens fulfill their civic duty by contributing to the national exchequer.
This move is part of a broader initiative to strengthen the tax base, ensuring that all eligible citizens contribute their fair share to the country’s development. While critics argue that such stringent measures may inconvenience the public, proponents emphasize the necessity of fostering a culture of tax compliance to fuel economic growth and development.
As the FBR proceeds with its disconnection drive, it remains to be seen how the public will respond and whether this approach proves effective in enhancing tax compliance across the nation.