FBR Tax officers get extensive powers to widen tax base

District Tax Officers (DTOs) of FBR get extensive powers to widen the tax base to bring 1.5 to 2 million new taxpayers. The federal caretaker government has established 145 DTOs across the country to improve the tax return rate.

The Federal Board of Revenue (FBR) confirmed the notification of DTOs establishment to bring forward 1.5 to 2 million new taxpayers into the tax net till June 2024.

FBR has notified the establishment of 145 District Tax Offices across the country to bring 1.5 to 2 Million new taxpayers into the tax net by June, 2024. The initiative aims to broaden the tax base and raise tax-to-GDP ratio. 1/2
— FBR (@FBRSpokesperson) November 17, 2023

FBR Tax officers get extensive powers to widen the tax base

Non-filers will face electricity and gas disconnection

The FBR has been granted broad powers under Income Tax Law including the ability to suspend utility connections like gas and electricity. They have also the ability to ban mobile SIM cards. If a return is not filed in response to issued notices of FBR.

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During the previous fiscal year, there were just 4.9 million return filers out of a total population of 240 million. There are around two million return filers who filed no returns. Thus, there is a huge opportunity to identify prospective non-filers or tax dodgers in order to broaden the tax base.

In this regard, the recent decision of the caretaker government to extend the powers of DTOs is beneficial. Because it will effectively implement tax return policy which will ultimately strengthen the national economy.

The FBR alerted the offices of 145 DTOs that they have to broaden the tax base eventually boosting the tax-to-GDP ratio to a desirable level. The DTOs plan to bring 1.5 to 2 million new taxpayers into the tax net by enforcing Income Tax Returns from non-filers and stop until June 2024.

The Inland Revenue Officers of BPS-17/18 will be DTOs. They would obtain and use third-party data obtained from multiple departments and agencies. Because they have critical information regarding asset investment. And massive expenditures by potential taxpayers who have so far managed to avoid the taxation system including registration and filing of tax returns.