Islamabad: The federal government issued an ordinance on Thursday (September 16) authorising the Federal Bureau of Revenue to disconnect utilities for non-filers who are not on the Active Taxpayer list (ATL), news sources reported.
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The decision was taken to broaden the tax base in the country and get more people into the tax net. Following the promulgation of the ordinance, the FBR will be able to cut Sui-gas connections, power, mobile/SIM cards, and bank accounts if the individual is registered but not on ATL. Moreover, the board will discontinue gas and power for people and Tier-1 retailers if they are unregistered, or if they are registered but not ‘integrated in terms of section 3(9A) of the Sales Tax Act 1990’.
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The requirements are introduced in the Income Tax Ordinance 2001 under the new section 114B (powers to enforce return submission). The FBR will now be allowed to issue tax notifications to those who are required to submit tax returns, and if they do not do so, the actions will be implemented. Similarly, the National Database and Registration Authority (NADRA) is now required to provide information on people’s assets and liabilities with the FBR upon request. The FBR has also issued stern cautions to tax evaders to file returns by the deadline in order to avoid inconvenience and legal action. The requirements are more severe for Tier 1 retailers not registered with the tax authority.