The Federal Board of Revenue (FBR) has
introduced a new measure to encourage tax
filing by implementing a SIM card blockade
for individuals who did not file their tax
returns for the year 2023
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According to the latest data from the Active
Taxpayers List (ATL), the FBR received 4.2
million taxpayers by March 1, 2024, marking
a marginal increase compared to the
previous year's 3.8 million returns over the
same period. In tax year 2022, a total of 5.9
million income tax returns were filed
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Under the new initiative, SIM cards will be
automatically restored for individuals who
file their tax returns for 2023. The FBR
updates its ATL listings every Monday, with
the names of eligible individuals submitted
to the Pakistan Telecommunication
Authority (PTA) and telecom companies for
restoration every Tuesday. This streamlined
process eliminates the need for separate
restoration procedures
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The blockade of SIM cards serves as an
incentive for low-income individuals to
submit their tax returns, contributing to the
increase in the number of return filers
Additionally, the FBR has introduced high
withholding tax rates for non-filers as part of
its strategy to broaden the tax base
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Furthermore, individuals who have filed
their returns once can avoid paying high
withholding tax rates in subsequent years
This initiative aims to incentivize one-time
tax filers to become regular contributors to
the tax system
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