Non-filers to pay 90% tax on mobile balance

ISLAMABAD: The Federal Board of Revenue (FBR) has devised a new strategy to enhance tax collection from non-filers, aiming to broaden the tax base across the nation. Under this plan, the FBR will implement a significant increase in withholding tax, raising it from 2.5% to 90% for non-filers.

This entails that when prepaid and postpaid non-filers recharge their mobile phone balances, 90% of the amount will be automatically deducted through an automated system and transferred to the FBR. For instance, if a non-filer loads Rs100 to their mobile phone, Rs90 will be deducted and remitted to the FBR.

In the event that non-filers persist in avoiding tax compliance despite their SIMs being blocked, they will incur an additional 90% tax for each new SIM purchase. Furthermore, this additional tax will be levied each time a non-filer recharges their SIM balance or utilizes calling and mobile data plans.

Recently, the FBR issued lists identifying over 500,000 non-filers and instructed the Pakistan Telecommunication Authority (PTA) and telecom companies to block their SIMs. Approximately 11,500 SIMs have already been blocked, with more expected to follow suit in the coming days.

The FBR has mandated May 15 as the deadline for telecom companies to block SIMs belonging to all identified non-filers. Earlier, the FBR identified millions of potential taxpayers who had not fulfilled their tax obligations and issued notices to them. From this pool, over half a million individuals were singled out for SIM blockade based on criteria such as taxable income declarations in previous years and non-filing for the tax year 2023.