The Federal Board of Revenue (FBR) has found another way to make people pay tax. The board has requested Ministry of Power to refuse utility connections to anyone who is not a tax filer in Pakistan.
The request was made by FBR chairman Shabbar Zaidi in a letter sent to Minister of Power. In the letter, he has sought the implementation of Section 181AA of Income Tax Ordinance, 2001 which says that any application for commercial or industrial connection of gas or electricity will not be processed or provided unless the individual applying for the connection is an income tax return filer.
The chairman has also announced to extend the date of filing the returns for TY18 to August 2.
If accepted, the Power Ministry will issue instructions to various power distribution companies in Pakistan demanding them to let people know that they have to be on the Active Taxpayers list for every new commercial or industrial electricity or gas connection.
The efforts of FBR are gradually coming to fruition as more and more people are becoming filers. In fact, it was recently announced that the number of tax filers has now crossed the two million mark in Pakistan – this is the highest first time ever in its history.