Karachi, August 8, 2024 – The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to update the Income Tax General Order (ITGO) on a weekly basis to remove the names of individuals who have filed their income tax returns.
This request was made in a letter sent on Thursday to Mufeeza Iqbal, Member IT (Information Technology) at the FBR, by KTBA President Syed Zafar Ahmed.
In the letter, KTBA highlighted a pressing issue faced by taxpayers: despite filing their income tax returns, their names continue to appear on the ITGO, leading to unnecessary complications. The KTBA emphasized the need for a more efficient system that promptly reflects the status of return filers, ensuring they are not penalized unfairly.
The concern arises from ITGO 01 of 2024, which was issued by the FBR on April 29, 2024. Under Section 114(b) of the Income Tax Ordinance 2001, this order directed the Pakistan Telecommunication Authority (PTA) and all mobile operators to block or disable the SIM cards of 506,670 individuals by May 15, 2024. These individuals were identified as non-filers for the Tax Year 2023, making them liable under Section 114 of the Income Tax Ordinance, 2001.
KTBA President Syed Zafar Ahmed pointed out that when a person files their income tax return for the Tax Year 2023, their mobile SIM is typically restored within 24 to 48 hours, either automatically or through communication with their telecom operator. However, the issue lies in the fact that even after the return has been filed and the SIM restored, the individual’s name remains on the ITGO. This creates confusion and potential challenges for return filers who have complied with their tax obligations.
The KTBA argued that just as the Active Taxpayer List (ATL) is updated on a weekly basis, the ITGO should also be refreshed regularly to exclude the names of individuals who have duly filed their income tax returns. Such an update would ensure that compliant taxpayers are not subject to the restrictions imposed by the order, particularly the disabling of their mobile phone services.
The association’s call for weekly updates to the ITGO is aimed at fostering a more efficient and taxpayer-friendly system, reducing the administrative burden on both the taxpayers and the FBR. By implementing this change, the FBR would not only streamline its processes but also reinforce trust among taxpayers, who rely on timely and accurate updates to reflect their compliance with tax laws.
