Pakistan Blocks Over 11,000 SIM Cards of Non-Tax Filers

Federal Board of Revenue (FBR) continues its efforts to enforce tax compliance by blocking SIM cards belonging to non-filers of income tax returns.

Latest Update:

  • The FBR has blocked over 11,252 SIM cards linked to individuals who haven’t filed their 2023 tax returns.

Background:

  • This action follows an earlier decision by the FBR to block SIM cards of non-filers under the Income Tax General Order (ITGO) No 1 of 2024.
  • The move sparked controversy, with some telecom operators initially resisting the implementation.

Joint Working Group Established:

  • To address concerns and ensure a smooth process, a Joint Working Group (JWG) has been formed.
  • This group comprises tax officials and representatives of telecom operators.
  • Their objective is to streamline the SIM card blockage process in accordance with the law.

Uncertainties Remain:

  • The legal status of the SIM card blockages remains unclear, as the Islamabad High Court (IHC) is considering a challenge to the FBR’s order.
  • The IHC previously clarified that the government’s decision to block SIMs is still in effect, while a separate order protecting a specific telecom operator does not apply universally.

Impact and Implications:

  • This action could significantly impact non-filers who rely on their mobile phones for communication and daily activities.
  • It highlights the FBR’s commitment to boosting tax collection and promoting tax compliance in Pakistan.

Stay Updated:

  • The situation is evolving, and further developments related to the legal challenge and the JWG’s work are expected.

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