The Federal Board of Revenue has decided to discontinue ‘broadening of tax’ zones established in major cities of the country in order to identify individuals not filing their tax returns. The taxation authority had established the BTB zones in Lahore, Karachi, Islamabad, Peshawar, and Faisalabad. It had aimed to expand the tax net by bringing unregistered non-filers through these zones.
FBR had tasked its Inland Revenue Operations wing with the expansion of the tax base, and resolving the cases initiated within these BTB zones. Now, the taxation authority has decided to assign the jurisdiction of these zones to the zonal commissioners. FBR has already communicated with the BTB zones In this regard, during the last week. FBR Chairman confirmed that they have discontinued the BTB zones. Chairman explained that they have found it impractical to divide the income tax non-filers into registered, and unregistered individuals.
The FBR chairman said that due to the creation of the BTB zones, the cases of the unregistered non-filers went to the zones, while the Inland Revenue department handled those for registered non-filers. The BTB Directorate General had already finished some work on the zones. This included the mapping process of the residential apartments, and commercial plazas. The directorate had also issued notices to these entities for not filing their income tax returns.