Pakistan’s Federal Board of Revenue (FBR) has intensified its enforcement campaign against tax non-filers by initiating a measure to deactivate their SIM cards.
In collaboration with telecom operators, over 3,500 SIM cards owned by non-filers have already been blocked, and warnings have been issued to approximately 5,000 additional individuals. The FBR is actively working with telecom companies to gather details about these blocked SIMs and has sent out a second batch of 5,000 non-filers to telecom operators, with a third batch scheduled for today.
An automated system verifying blocked SIMs’ status is slated for future implementation, reflecting ongoing efforts to streamline the process. Currently, the blocking process is conducted manually, a stopgap measure pending the development of the automated system.
During a meeting last Saturday, telecom companies presented a preliminary compliance report regarding their actions regarding the notifications sent and the SIMs blocked by the Pakistan Telecommunication Authority (PTA) and telecom operators to ensure adherence to Income Tax General Order No. 1 issued under Section 114B of the Income Tax Ordinance 2001, mandates the blocking of mobile phone SIMs belonging to non-filers for the tax year 2023.
The enforcement of this order is part of a broader strategy to enhance tax compliance. The FBR anticipates that this initiative will increase the number of tax filers and, subsequently, revenue collection. However, due to these measures, the PTA has expressed concerns about potential adverse impacts on telecom companies and the FBR’s operational efficiency.
