FBR decides to cut electricity and gas connections of non-filers

The Federal Board of Revenue (FBR) has decided to cut the electricity and gas connections of non-filers in a bid to promote tax compliance and tax culture.

According to sources, the decision was taken to bridge the gap of revenue shortfall in fiscal year 2024.

The tax body has also decided to impose Rs1 million fine on those who file an incorrect and incomplete tax, and their account will also be frozen.

Sources added that people who failed to file tax returns for FY24, will be barred from buying property and vehicles. 

According to the details, non-filers and incorrect or incomplete tax filers would be monitored by a third party, and if they were found involved in illegal practices, they would be audited via artificial intelligence and money laundering measures.

Meanwhile, emergency implementation of tier-I will also be effective for manufacturers and retailers.

It is pertinent to mention here that the FBR remained behind the estimated target of August revenue, showing a shortfall of over Rs100 billion.

The tax body had managed to collect only Rs790 billion against the Rs898 billion targeted revenue.

It reflected a massive shortfall of Rs108 billion, which is creating complications in the approval of the $7 billion loan tranche by the IMF’s Executive Board.