Pakistan to cut off mobile connections for more than 500,000 people who don’t file tax returns
ISLAMABAD: Pakistan has decided to block mobile phone connections of more than 500,000 individuals who have not filed their 2023 tax returns, the country’s tax authority announced on Tuesday.
Pakistan’s narrow tax base and persistent tax evasion problems often result in insufficient revenue. This shortfall has exacerbated the tendency of governments to run large budget deficits, which are often financed by domestic and foreign borrowing.
The Federal Board of Revenue (FBR) said in December that the country has a “very narrow tax base” of about 5.2 million people out of a population of 240 million in 2022, with an additional 1.5 million taxpayers. announced that they are planning to add . We will start operating the existing base within this fiscal year.
On Tuesday, the FBR issued an order mandating the filing of returns by persons who are not on the list of active taxpayers.
“The FBR has taken decisive action by issuing orders to disable the SIMs of mobile phones associated with 5,06,671 persons falling under the above-mentioned categories,” the regulator said in a statement.
“Pakistan Telecommunication Authority (PTA) and all telecom operators are directed to immediately enforce the ITGO and ensure speedy implementation of the order.”
These mobile connections will remain blocked until restored by the FBR or the concerned Inland Revenue Commissioner, the statement said. Telecom operators have been asked to submit compliance reports to the FBR by May 15.
In an effort to widen the tax base, Prime Minister Shehbaz Sharif’s government recently decided to digitize the tax collection system to prevent leakages, even though large parts of the national economy are undocumented.
Pakistan, which is facing economic collapse, is also working to introduce economic structural reforms. The South Asian country will meet its primary deficit target of 401 billion rupees ($1.44 billion), equivalent to 0.4% of gross domestic product, for this fiscal year by the time the government presents its budget in June. There is a need.
