The Federal Board of Revenue (FBR) has significant authority to ensure compliance with tax filing obligations in Pakistan. With tax year 2025 filing mostly concluded, except for corporate returns due on December 31, 2025, it is important for taxpayers to understand what actions the FBR can take if returns are not filed on time.
This guide explains the powers granted under Section 114B of the Income Tax Ordinance, 2001 and how taxpayers can respond to avoid penalties or restrictions.
What FBR Can Do Under Section 114B
Section 114B empowers the FBR to issue Income Tax General Orders against individuals who are not on the Active Taxpayers’ List (ATL) but are liable to file returns.
These orders may include one or more of the following actions:
1. Disabling Mobile Phones or SIMs
2. Discontinuation of Electricity Connection
3. Discontinuation of Gas Connection
4. Restriction on Foreign Travel
⚠ Exemptions apply to:
• NICOP holders
• Minors and students
• Persons traveling for Hajj or Umrah
• Other categories notified by the FBR
Conditions Before FBR Can Take Action
The FBR cannot immediately enforce these measures. Certain conditions must be met first:
1. A notice under Section 114(4) must be issued.
2. The compliance deadline of the notice must pass.
3. The return must remain unfiled after the deadline.
✅ Interactive Tip: Keep track of any FBR notices and deadlines in a calendar or accounting software to avoid unintended penalties.
How to Restore Services
If your mobile phone, gas, or electricity has been disabled due to non-filing, the FBR allows restoration if:
• You file the pending tax return, or
• It is confirmed that you were not liable to file a return.
💡 Pro Tip: Always retain proof of filing and correspondence with FBR to expedite restoration of services.
Additional Notes
• Enforcement under Section 114B does not prevent other actions under the Income Tax Ordinance.
• Corporate taxpayers should note that December 31, 2025, is the final filing date for 2025 corporate returns.
📊 Quick Checklist for Taxpayers:
• ✅ Check ATL status online
• ✅ File pending returns immediately
• ✅ Respond to FBR notices promptly
• ✅ Maintain proof of filing and payment
Why Compliance Matters
Failure to comply can result in service disruptions, travel restrictions, and legal complications. Early compliance ensures:
• Avoidance of unnecessary penalties
• Smooth operation of daily utilities
• Freedom to travel internationally
• Peace of mind and clean tax record
📌 Key Takeaway: Filing your tax return on time is the simplest way to avoid enforcement actions under Section 114B.
FAQ
Q1: Who is exempt from FBR enforcement actions?
• Minors, students, NICOP holders, and persons traveling for Hajj or Umrah are exempt.
Q2: Can FBR disable multiple services at once?
• Yes, actions may include mobile, gas, electricity, and travel restrictions simultaneously.
Q3: How can I get services restored?
• File the pending tax return or provide proof of exemption.
Q4: Are there penalties besides service restrictions?
• Yes, Section 114B actions are in addition to any other tax penalties under the Ordinance.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal or professional tax advice. Taxpayers should consult a qualified tax advisor or the Federal Board of Revenue (FBR) for guidance specific to their circumstances. The author and publisher are not responsible for any consequences arising from actions taken based on this information.