Daily Times

The Federal Board of Revenue (FBR) has ‘delayed’ nationwide crackdown against non-filers, a private TV channel reported on Tuesday, citing sources.

The FBR was set to suspend SIMs and utility connections of the non-filers on the International Monetary Fund’s demand, but now the decision has been ‘delayed’ due to ‘legal issues’.

Sources privy to the development said the action is being ‘delayed’ over non-completion of the Income Tax General Order because FBR may have to face courts on legal grounds. The action against non-filers can be initiated by March 1 after releasing the active taxpayers list, the source said. After addressing the legal issues, the tax collection body will suspend SIMs and utility connections of the non-filers.

The IMF’s move to issue notices to hundreds of thousands of non-filers is part of a broader strategy to boost tax compliance in Pakistan.

Last week, the Executive Board of the International Monetary Fund (IMF) completed the first review of Pakistan’s economic reform programme supported by its Stand-By Arrangement (SBA). “The Board’s approval allows for an immediate disbursement of SDR 528 million (around US$ 700 million), bringing the total disbursements under the SBA to US$ 1.9 billion,” a Finance Ministry news release said.