learnedutoday
In a significant development, the Federal Board of Revenue (FBR) has issued directives to block mobile phone connections of more than 500,000 non-filers, as efforts to encourage retailer registration flounder with only 75 participants. The FBR’s tax collection fell short by approximately Rs40 billion for the first ten months of the fiscal year, despite a 31% increase. This follows the government’s removal of 25 officers over alleged corruption, sparking discontent among customs officers.
The Income Tax General Order (ITGO) has been issued to disable SIMs of 506,671 individuals who haven’t filed income tax returns for Tax Year 2023, a move aimed at compelling compliance. Only a fraction of eligible retailers registered despite a government scheme, indicating resistance to tax obligations.
Amidst these challenges, the FBR remains determined, stressing its commitment to broaden tax compliance. However, the revenue shortfall persists, particularly in income tax, sales tax, and customs duties, partly attributed to import restrictions.
The removal of senior FBR officers by the prime minister has triggered dissatisfaction within the customs service, with officers expressing concerns over transparency in the decision-making process. Plans to remove grade-20 officers further exacerbate tensions.
Customs officers are contemplating various responses, including a potential strike or mass leave applications. The situation underscores broader discontent within the tax administration, posing challenges to revenue mobilization efforts.
Haseeb Abdullah
