FBR provides details of 5,000 non-filers to telecom operators for blocking SIMs

ISLAMABAD: The Federal Board of Revenue (FBR) has furnished details of 5,000 non-filers to telecommunication operators for the purpose of blocking their services.

Following this, telecommunication operators have initiated sending warning messages to non-filers, cautioning them about potential service suspension.

According to an FBR spokesperson, meetings were held with the Pakistan Telecommunication Authority (PTA) and telecommunication operators to implement the Income Tax General Order.

Telecommunication operators have now agreed to manually block non-filers in smaller batches. They will continue to send daily batches for blocking.

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The FBR emphasised that its collaboration with telecommunication operators reflects its commitment to enforce tax laws.

It’s important to note that last week, the Pakistan Telecommunication Authority had excused for blocking more than 500,000 SIMs related to non-tax filers, following the Federal Board of Revenue’s decision. In 2023, the FBR had resolved to block more than 500,000 individuals who failed to file tax returns.

However, the PTA responded to the blocking issue by stating that it is not legally bound to block SIMs for non-filers.

The impact of SIM blocking on non-filers can be significant. Non-filers will face communication challenges as their mobile SIMs are blocked, affecting their ability to make calls, send texts, and use mobile data.

Essential digital services that rely on mobile connectivity, such as banking, e-commerce, remittances, and financial assistance, could be disrupted. There are concerns that blocking SIMs of non-filers may hinder Pakistan’s digital transformation and violate citizens’ economic rights.

The move could discourage foreign investment and affect the country’s digitalization efforts. Telecom companies have pointed out legal complexities in implementing the FBR’s directives, which could lead to legal disputes and challenges.

The measure is intended to pressure non-filers into complying with tax laws and filing their returns to restore their mobile services.

The FBR’s decision to block SIMs is part of a broader strategy to enforce tax compliance, and it reflects the government’s commitment to tax law enforcement. However, the implementation faces operational and legal challenges, and the FBR is considering legal action against telecom companies that fail to comply with the SIM blocking orders. Non-filers have been advised to regularize their tax status to avoid these disruptions.