The chairman of the Federal Board of Revenue (FBR) has approved the FBR’s decision to disable 500,000 tax evaders’ SIM cards. The necessary rules have been communicated to the pertinent officials by the FBR in this respect.
Two million tax evaders are reportedly known to the FBR, but mobile service providers asked the tax office to deny them access because they were unable to pay to restrict so many SIM cards. It was determined to restrict 500,000 tax evaders’ SIM cards in response to the request.
Pakistan’s tax-to-GDP (gross domestic product) ratio is significantly lower than the regional norm, at less than 10%. To cover its expanding expenses, the government must increase tax receipts. This has caused it to borrow more, building up an unmanageable debt load. By focusing on unexplored markets and apprehending tax evaders, the government may raise tax revenue.
Pakistan has also been requested by the International Monetary Fund (IMF) to increase tax revenue, which would assist reduce the government’s rapidly growing budget deficit.
Four million under-tax payers have reportedly been found working with the Pakistan Telecommunication Authority, which oversees the telecom industry. These reports come from people close to FBR. These people, although having taxable income, have not submitted their tax forms. A General Order on Income Tax will be issued shortly by the FBR.
These individuals received letters from the FBR, but they haven’t yet submitted their tax filings. The FBR’s push to increase the tax base has led to the identification of the non-filers, and their SIMs will be stopped.
