PTBP Web Desk
The Federal Board of Revenue (FBR) has recently introduced a significant procedural update aimed at enhancing tax compliance in Pakistan. This new initiative involves the automatic communication of a list of taxpayers who have fulfilled their income tax return obligations to telecom companies. This step is crucial for the unblocking of mobile phone SIMs, previously suspended due to non-compliance under Section 114B of the Income Tax Ordinance, 2001.
Initially, the FBR, through its IT arm Pakistan Revenue Automation Limited (PRAL), identifies taxpayers who have not filed their returns. These lists are then sent to field formations for scrutiny, ensuring that all legalities and prerequisites for issuing an Income Tax General Order (ITGO) are met.
Following this, Chief Commissioners of the FBR issue certificates verifying the non-filer status of individuals listed. This certification is pivotal before any ITGO can be actioned, ensuring accuracy in the enforcement actions taken.
With verification completed, the FBR then issues an ITGO. This order can mandate actions like the suspension of mobile phone services for non-filers, as per Section 114B(2) of the Ordinance. This order is then communicated to the relevant service providers, who are expected to comply immediately.
Telecom operators and utility companies receive the ITGO with directives for immediate implementation. They are required to provide a compliance report to the FBR within a stipulated period.
In cases where telecom companies fail to adhere to the ITGO, legal repercussions can follow, including prosecution under Section 196 and penalties under Section 182 of the Income Tax Ordinance.
A specialized team within the FBR is tasked with monitoring the enforcement of these orders. They track compliance, analyze the effectiveness of the initiative, and report back to the authorities.
If a taxpayer’s mobile service remains suspended despite filing their tax return, or if they face issues related to the suspension, they can approach the concerned Commissioner. The Commissioner reviews these grievances, ensuring that legitimate filers are not unduly penalized.
This procedural overhaul by the FBR not only aims to increase tax compliance but also ensures that there is a systematic and fair approach towards enforcing tax laws. By linking mobile phone usage with tax compliance, the FBR taps into a daily necessity, thereby making tax evasion more challenging. This method also streamlines the process for taxpayers who have complied, offering them quicker resolution to service disruptions.
The use of technology in this SOP is noteworthy. By automating the communication of compliance status to telecom companies, the process reduces manual errors, speeds up compliance enforcement, and enhances the overall efficiency of tax collection mechanisms. This integration showcases how digital solutions can be pivotal in administrative governance.
This initiative could set a precedent for how government agencies can leverage technological solutions to enforce regulations. It reflects a broader trend towards digital transformation in public sector operations, aiming for transparency, efficiency, and accountability.
