Islamabad, The Federal Board of Revenue (FBR) has taken a significant step in restructuring its operations by establishing 145 District Tax Offices across the country. This initiative is aimed at incorporating 1.5 to 2 million new taxpayers into the system by June 2024, in line with the Prime Minister’s emphasis on increasing revenue and the number of tax filers.

According to Press Information Department, the FBR’s move to set up these offices is part of a strategy to broaden the tax base and elevate the tax-to-GDP ratio. District Tax Officers, leading these offices, will be responsible for enforcing Income Tax Returns from non-filers and stop filers. These officers, mostly Inland Revenue Officers in BS-17/18, will also use third-party data from various departments and agencies to identify potential taxpayers who have not yet registered or filed tax returns.

A significant tool in this initiative is the implementation of section 114B in the Income Tax Ordinance, 2001, which allows for the disconnection of utility services and blocking of mobile SIMs for individuals who do not file returns in response to official notices. The Federal Government is committed to supporting the FBR in these measures, including the introduction of a new Documentation Law that mandates data sharing with the FBR through an automated common transmission system. Furthermore, collaboration with the National Database and Registration Authority (NADRA) has been established to assist in widening the tax base through data integration.

This initiative by the FBR is expected to not only enhance its capacity to enforce tax laws but also to facilitate taxpayers in filing returns by establishing dedicated offices for assistance. The move marks a crucial step towards ensuring a more inclusive and efficient tax system in Pakistan.