The Federal Board of Revenue (FBR) on Tuesday told the International Monetary Fund (IMF) team that it plans to disconnect utility connections of non-filers, sources said.

The board officials held virtual talks with the technical team of the IMF where the two parties discussed Compliance Risk Management and measures to enhance tax collection across various sectors, they added.

According to sources, the imposition of taxes on profitable businesses was also discussed during the talks while the tax collector body briefed the IMF team on the notices sent to non-filers.

During the negotiations, the FBR said that it has issued 746,000 non-filers while measures will be taken to disconnect their electricity connections.

Sources further said that the IMF technical team will issue a detailed report on the talks with the FBR..

It is pertinent to mention that the government has agreed on a tax target of more than Rs1.1 trillion for the upcoming fiscal year. The federal government’s expenditure for the next financial year will clock in at Rs1.6 trillion.

Last month, the FBR was empowered to disconnect utility connections including electricity and gas connections and blocking of mobile SIMs, if tax returns were 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 on November 18.

To broaden the tax base, the FBR said it planned 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.