Following the Pakistan Telecommunication Authority’s (PTA) refusal, the Federal Board of Revenue (FBR) has opted to convene all mobile phone operators to guarantee the blocking of SIMs belonging to 506,671 non-filers by the May 15, 2024 deadline.
A senior FBR official clarified to the media that the PTA’s rejection holds no legal weight, emphasizing that cellular companies will execute the SIM blockages. The FBR intends to urgently convene a meeting with telecom operators, directing them to adhere to the stipulated deadline for SIM blockage or face legal repercussions.
Sources affirm that the telecom operators are obligated to comply with the FBR’s directives, and the PTA’s opposition holds no legal implications for the revenue authority. The FBR had previously issued an Income Tax General Order No. 01 of 2024 to enforce tax return filings by individuals not listed as active taxpayers but liable under the Income Tax Ordinance 2001 for the tax year 2023.
However, the PTA has objected to the SIM card blockages, asserting its incompatibility with their system. The telecom regulator contends that it is not legally bound to implement SIM blockages, and the Income Tax Ordinance 2021 does not apply to the PTA. Furthermore, PTA warns that blocking a significant number of SIMs could impede digitalization efforts, adversely affect the telecom economy, and deter foreign investment in the sector.
Concerns have also been raised regarding potential disruptions to banking transactions, e-commerce, and mobile account users. Non-filers of income tax returns can verify their status from the list of 506,671 individuals specified in the Income Tax General Order No. 01 of 2024, available on the FBR’s website.
Mobile SIMs associated with the mentioned individuals will remain blocked until restoration by the FBR or the relevant Commissioner of Inland Revenue. The FBR has directed the PTA and all telecom operators to ensure immediate compliance with the Income Tax General Order, with a mandated compliance report due to the FBR by May 15, 2024.
