Section 114B gives FBR powers to restrict mobile, utility and foreign travel facilities for eligible non-filers after required notices and deadlines.

ISLAMABAD: The Federal Board of Revenue (FBR) has powers under the Income Tax Ordinance, 2001 to enforce income tax return filing against individuals who are legally required to file but fail to do so.

According to the updated Income Tax Ordinance, 2001, applicable for tax year 2027, Section 114B allows the FBR to issue an income tax general order against persons who are not appearing on the Active Taxpayers’ List despite being liable to file their returns.

Under the provision, the FBR can impose several consequences on identified non-filers. These include disabling mobile phones or SIMs, discontinuing electricity connections, discontinuing gas connections, or restricting foreign travel.

However, travel restrictions do not apply to certain categories, including Pakistani citizens holding a National Identity Card for Overseas Pakistanis (NICOP), minors, students and people travelling abroad for Hajj or Umrah. Other categories may also be excluded if notified by the FBR.

The law also provides a mechanism for restoring restricted services. The FBR or the relevant Commissioner may order restoration of mobile services, electricity or gas connections if the individual files the required return or demonstrates that they were not legally required to file one.

Conditions for FBR Action

A person cannot be included in a general order immediately. Section 114B requires that a notice under Section 114(4) must first be issued, the deadline specified in that notice must expire, and the person must still have failed to file the return.

The FBR may also take other legal action available under the Income Tax Ordinance.

The provisions therefore give the tax authority a statutory mechanism to compel compliance after the prescribed notice and filing requirements have been completed.