Pakistan’s Federal Board of Revenue (FBR) is taking a tough stance against non-tax filers, with measures that could significantly impact their mobile phone usage.
SIM Card Blockages:
- Over 9,100 SIM cards belonging to non-tax filers have already been blocked based on data provided by the FBR to telecom companies.
- The FBR plans to share data on an additional 30,000 non-filers in batches of 5,000 daily, potentially leading to further SIM card blockages.
Proposed Tax on Top-Ups:
- The FBR previously suggested imposing an 87.5% withholding tax on mobile top-ups for non-filers.
- This hefty tax could mean users receiving only Rs 10 for every Rs 100 top-up until they file their income tax returns.
Background:
- The FBR has identified over 550,000 non-filers in Pakistan.
- The aim of these measures is to encourage tax compliance by making it more inconvenient and expensive for non-filers to use mobile phones.
Challenges and Concerns:
- Blocking SIM cards could disrupt essential communication services for non-filers, even those who may not be liable for significant taxes.
- The proposed tax on top-ups could disproportionately impact low-income mobile phone users.
Uncertainties Remain:
- The initial request by the FBR to block SIM cards was rejected by the Pakistan Telecommunication Authority (PTA) and cellular companies.
- It’s unclear whether the FBR’s latest approach will be implemented or face further resistance.
