Does the FBR cut off electricity and gas connections to non-taxpayers?

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The Chairman of the Federal Board of Revenue (FBR) hinted in a recent hearing of the US Senate Standing Committee on Finance and Revenue that the government may cut off electricity and gas connections to tax evaders as part of its efforts to expand the tax base.

In another development, the Senate Standing Committee on Finance and Revenue, chaired by Saleem Mandviwalla, on Saturday approved a proposal to impose an entry ban on taxpayers who have not filed their tax returns. Several decisions were taken during the meeting.

FBR Chairman Zubair Tiwana informed the committee that those who fail to file tax returns will face action under the Income Tax General Order (ITGO). However, certain exemptions would be granted to nationals for Hajj, Umrah, children, students and National Identity Card for Overseas Pakistanis (NICOP) holders.

He said taxpayers who do not file tax returns will face having their SIM cards, electricity and gas connections blocked and possibly having their businesses closed. Tiwana also mentioned the approval of a higher withholding tax rate for taxpayers who do not file tax returns, noting that the list of taxpayers includes 500,000 people with annual incomes of over 2 million.

Furthermore, Tiwana explained that those on the list had previously disclosed their income details in their tax returns. He stressed that even those who only file a tax return temporarily would be subject to additional taxes when purchasing vehicles, land or housing.

In addition, the Senate approved proposals to revise salary scales, raise taxes and impose a 75% withholding tax on mobile phone and internet bills of taxpayers who do not pay taxes.