The District Taxation Officers are now granted full authority, under section 114B of the Income Tax Ordinance, 2001, to disconnect utility services such as electricity and gas, as well as block mobile SIMs for individuals who are non-filers. The Federal Board of Revenue (FBR) can issue Income Tax General Orders for those not appearing on the Active Taxpayers List but are obligated to file returns.

Consequences outlined in the Income Tax General Order include disabling mobile phones or SIMs, discontinuing electricity, and halting gas connections. To enhance tax compliance, the Finance Minister has approved the establishment of 145 District Tax Offices, aiming to bring 1.5 to 2 million new taxpayers into the system by June 2024.

These offices, led by District Tax Officers, have been established to enforce income tax returns from non-filers and stop filers. The move aligns with the government's commitment to boosting revenue and increasing the number of tax filers. These District Tax Officers, at BS-17/18 level, will leverage third-party data from various departments to identify potential taxpayers who have thus far evaded the taxation system.

Section 114B of the Income Tax Ordinance, 2001, will be utilized to disconnect utilities and block mobile services if individuals fail to respond to notices. The government is also introducing a Documentation Law to ensure agencies provide data to the FBR through an automated system. Collaboration with NADRA is sought to widen the tax base through data integration, and the chairman of NADRA has pledged assistance.

This initiative not only strengthens the FBR's capacity to enforce tax laws but also facilitates taxpayers in filing returns through the establishment of dedicated offices.