Telecom companies may face hefty fines for not blocking non-filers’ SIMs

ISLAMABAD: The government has decided to impose substantial fines on telecom companies that fail to block SIMs of non-filers, as proposed in the Finance Bill for the next financial year.

Under the new amendments, a penalty of Rs 100 million will be levied for the first default, with Rs 200 million imposed for each subsequent failure. The amended Finance Bill also includes provisions to impose penalties on the Federal Board of Revenue (FBR), with the enforcement date to be specified.

FBR forms joint working group to block SIMs of non-filers

The penalties will only be effective after a formal notification is issued. The Federal Board of Revenue (FBR) has already issued income tax orders to the concerned mobile phone companies, mandating the blocking of non-filers’ SIMs. A notification of the penalty imposition is required within 15 days of issuing the orders.

This move follows recommendations from the Senate Standing Committee on Finance, chaired by Salim Mandviwala, which urged the FBR to reconsider penalizing telecom companies. During the committee meeting, concerns about the tax proposals for the telecom sector were discussed.

A representative of the telecom industry highlighted the challenges faced by the sector, citing conflicting laws and failed policies. Despite being the largest investor and highest tax-paying industry in the country, the telecom sector is struggling with heavy taxation and operational burdens.

IHC stays blocking of mobile phone SIMs of non-filers

The representative emphasised the critical role of the internet and the disproportionate 75 per cent tax imposed on non-filers, which significantly reduces revenue for telecom companies.

The telecom industry is urging the government to review these tax proposals and recognize the sector’s contribution to the country’s digital future. – INP