FBR will deactivate mobile SIM cards in case of non-filing of tax returns

ISLAMABAD: The 2022 Appropriation Bill proposed to empower the Federal Board of Revenue (FBR) to disable SIM cards from mobile phones of non-filers of the annual tax return.

Furthermore, it is also proposed to authorize the FBR to disconnect the electricity and gas connections of non-declarants.

READ MORE: Pakistan changes tax laws to legalize money transfers

The amendment was proposed through the 2022/2023 budget, which was presented on June 10, 2022.

The Finance Bill 2022 proposed the insertion of Section 114B into the Income Tax Ordinance 2001.

Here is the text of the proposed amendment:

“114B. Powers to compel filing of returns.— (1) Notwithstanding anything contained in any other law now in force, the Council has the power to issue a general income tax order in respect of persons who are not on the list of active taxpayers who are required to file a return under the provisions of the Ordinance.

LEARN MORE: Fixed tax rates for retailers, payable on electricity bills

(2) A general income tax order made under subsection (1) may have any or all of the following consequences for the persons mentioned therein, namely:

(a) deactivation of cell phones or cell phone SIM cards;

(b) interruption of the electrical connection; Where

(c) interruption of the gas connection.

(3) The Board or Commissioner having jurisdiction over the person mentioned in the General Income Tax Order may order the restoration of mobile phones, mobile phone SIM cards and electricity and gas connections, where he is satisfied that:

READ MORE: Pakistan changes laws to drive out tax evaders living abroad

(a) the return has been filed; Where

(b) the person was not required to file a statement under the provisions of the order.

(4) No one may be included in the General Order under subsection (1) unless the following conditions have been met, namely:-

READ MORE: CGT up to 15% slapped on real estate

(a) the notice provided for in subsection (4) of section 114 has been issued;

(b) the notice’s compliance date under subsection (4) of Section 114 has passed; and

(c) the person has not filed the return.

(5) Action under this section does not exclude any other action provided under the provisions of the Order. »