The Federal Board of Revenue (FBR) is actively working to broaden Pakistan’s tax base by implementing strict measures aimed at increasing the participation of taxpayers by cutting off electricity and gas and blocking SIM cards of non-filers.
With a specific goal of bringing in 1.5 to 2 million new taxpayers into the system by June 2024, the FBR has established 145 district tax offices nationwide.
To achieve this target, the FBR is leveraging third-party data sources to gather information about taxpayers. This data will be used to identify non-filers, leading to decisions to disconnect electricity and gas meters for those not adhering to tax obligations, and even block mobile SIM cards.
Emphasizing the importance of cooperation from various institutions and departments, the FBR highlights the need for these entities to provide data through an automatic transmission system. This collaborative effort aims to significantly expand the tax base in Pakistan.
The FBR has set an ambitious goal to raise the tax-to-GDP ratio to the desired level, a crucial metric for the country’s economic framework. Despite having approximately 2.2 million taxpayers, the number of filers falls considerably short of this figure.
Recognizing the importance of tax compliance, especially with extensions granted for filing tax returns, the FBR has extended the deadline for the submission of income tax returns to December 31. This extension is intended to give taxpayers ample time to fulfill their obligations and contribute to the country’s financial system.
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