FBR introduces new tax return forms for Tax Year 2024

Islamabad: The Federal Board of Revenue (FBR) has unveiled updated tax return forms for salaried individuals, associations of persons (AoPs), companies, and business entities for the tax year 2024. The electronic versions of these forms were officially notified under SRO949 of 2024, issued on Thursday. Alongside this announcement, amendments to the income tax rules have also been incorporated.

In a parallel move, through notification SRO0950, the FBR has introduced manual income tax return forms for individuals for the same tax year, accompanied by corresponding amendments in the income tax rules, all effective from Thursday.

In a separate development, the FBR disclosed that it has blocked 210,000 SIM cards belonging to users who have not fulfilled their tax obligations, as part of efforts to expand the tax base. Initially implemented in April, this measure resulted in the blocking of connections, with subsequent restoration for 62,000 SIMs upon compliance with tax requirements, according to FBR sources.

“We have restored SIMs for those individuals who have cleared their tax liabilities,” stated Bakhtiar Muhammad, a public relations official at the FBR.

Pakistan, with more than 192 million mobile subscribers served by four telecom operators, mandates SIM registration with national identity numbers, often linked to multiple connections.

Critics have voiced concerns over the implications of such actions on essential services and individual freedoms. “Access to telecom services is fundamental, supporting critical needs such as information access, education, and emergency services,” noted an official from a telecom firm, speaking anonymously.

Meanwhile, digital rights activists and telecom industry representatives have criticized the FBR’s approach, labeling it impractical and potentially detrimental to investment climate.

“Pakistan’s efforts to boost revenues face challenges due to a largely informal economy,” commented Fareiha Aziz, a digital rights advocate. “Imposing tax-related measures on SIM card holders, many of whom are not liable to pay taxes, could adversely affect livelihoods.”

The government’s pursuit of increased revenues has coincided with negotiations for additional financial support from the International Monetary Fund, underscoring the importance of bolstering domestic resource mobilization.

The dialogue between authorities and telecom operators continues, focusing on leveraging technology to enhance tax collection efficiency while addressing industry concerns regarding operational disruptions.