Pakistan’s Federal Board of Revenue (FBR) is taking a firm stance against non-filers of income tax returns. Their efforts have resulted in the blocking of over 105,000 SIM cards as of June.
FBR Systematically Targeting Non-Filers:
- Data Sharing with Telecom Operators: The FBR is systematically identifying non-filers and sharing their data with telecom companies.
- Daily Updates: Data for 5,000 non-filers is reportedly being sent to telecom operators on a daily basis.
Compliance Through SIM Blockage:
- Over 18,000 SIMs Restored: This initiative appears to be encouraging compliance, with over 18,902 individuals filing their tax returns after having their SIMs blocked.
Background and Developments:
- Joint Working Group Established: In May 2024, the FBR formed a working group with telecom operators to streamline the SIM blocking process.
- Initial Resistance from Telcos: Leading telecom companies initially resisted blocking SIMs, but began enforcing the measure in late May.
- Large Pool of Non-Filers Identified: The FBR has identified over 506,671 individuals who failed to file their 2023 income tax returns.
Uncertainties and Future Actions:
- Impact on Remaining Non-Filers: It remains to be seen how many more non-filers will comply due to the SIM blocking initiative.
- FBR’s Continued Focus: The FBR’s commitment to tackling non-compliance suggests they may continue this approach.
