ISLAMABAD (Dunya News) - In a bid to tighten the screw on non-filers, the Federal Board of Revenue (FBR) has decided to block the mobile SIMs of 506,000 non-filers.
The Income Tax General Order has been issued to materialise the initiative.
As per the order, the FBR has identified those people whose income tax returns have not been filed.
“Despite being able to pay income tax, they are not filing returns and therefore they are not included in FBR Active Tax Payers List,” the statement added.
According to the FBR, the mobile phone connections of those who have not filed income tax returns could be closed any time.
The institution has sought a detailed report from the Pakistan Telecommunication Authority.
Sources said a list of 500,000 individuals on whom the authorities are zooming in just represents the first phase and has been given a final shape after detailed discussions involving the FBR, the PTA and the mobile phone operators.
It is reported that the FBR had actually identified two million possible tax evaders, but the mobile phone companies requested that they could not block such a huge number of SIMs in one go.
The current economic crisis is a result of dismal tax-to-GDP ratio in Pakistan – one of the lowest in Pakistan – which is a product of the government failure to expand the tax base, resulting in an alarming increase in indirect taxation and further burdening those who already pay the amount.