Non-filers get ready for suspension of phone, gas, power

Non-filers get ready for suspension of phone, gas, power

ISLAMABAD: Persons fail to file their annual tax returns by September 30, 2021 may face blockage of mobile phone service or disconnection of gas and electricity.

The Federal Board of Revenue (FBR) has made it clear that date extension for return filing is not under consideration.

This means the persons having taxable income shall file their returns after due date with fine and penalties besides facing harsh actions that are introduced through Tax Laws (Third Amendment) Ordinance, 2021.

The FBR in its Circular No. 7 of 2021/2022 (Income Tax) said that broadening of the tax base is the highest priority of the Board and paramount to increase the revenue.

To augment the existing measures to broaden the tax net and to increase the number of return filers, a new section 114B has been inserted to the Income Tax Ordinance, 2001, which empowers the FBR to issue Income Tax General Order in respect of persons who are not appearing on Active Taxpayers List (ATL) but are liable to file return under the provisions of the Ordinance.

The amendment has been brought through Tax Laws (Third Amendment) Ordinance, 2021, which was promulgated through presidential order on September 15, 2021.

The FBR is also empowered to discontinue the use of Mobile Phone connections, electricity connections and gas connections of the non-filers.

Board or the concerned Commissioner are also empowered to issue orders to restore above discontinued connections in cases where the return has been filed or the person was not required to file return of income.

Before inclusion of any person in the general order, following conditions are required to be met: Notice under sub-section (4) of section 114 has been issued; Date of compliance of the notice under sub-section (4) of section 114 has lapsed; and tax return has not been filed.

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