The Federal Board of Revenue will now be authorised to disconnect utility connections including electricity and gas connections and blocking of mobile SIMs, if tax returns are not filed in response to notices issued.

“As part of restructuring measures, FBR has established 145 District Tax Offices which will focus on bringing 1.5 to 2 million new taxpayers into the tax net till June, 2024,” the tax collector said in a statement.

The FBR has notified the establishment of these offices that will help broadening the tax base and ultimately raising tax-to-GDP ratio to a desired level, it added.

As per the FBR, the offices would be headed by district tax officers to enforce Income Tax Returns from non-filers and stop filers.

“These new offices would be headed by dedicated Inland Revenue Officers in BS-17/18 which would obtain and utilise third party data acquired from multiple departments and agencies that hold critical information regarding investment in assets and incurring of huge expenditures by potential taxpayers who till now have managed to escape and stay away from the taxation system including registration and filing of tax returns,” the FBR said.

For the purpose of broadening the tax base, the FBR plans to invoke recently introduced section 114B in the Income Tax Ordinance, 2001 which authorises the department to disconnect utility connections including electricity and gas connections and blocking of mobile SIMs, if return is not filed in response to notices issued.

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Additionally, a new Documentation Law is also being introduced to obligate various agencies/departments to provide data to the FBR through automated common transmission system, the Board said.

The FBR has sought collaboration from the National Database and Registration Authority (NADRA) where the chairman of authority has assured the Board for its assistance for widening of tax base through Data Integration.