The Federal Board of Revenue (FBR) has escalated its enforcement against tax non-compliance by blocking over 3,600 mobile SIMs of non-filers across Pakistan.
Sources indicate that FBR submits the details of 50,000 non-filers daily to the Pakistan Telecommunication Authority (PTA).
The strategy involves gradually blocking SIMs, with telecom companies receiving lists of non-filers and PTA handling a cumulative list of 566,671 individuals. This process of SIM blocking is conducted in small batches under the provisions of Income Tax General Rules 114B.
Concerns have been raised by a joint working group regarding the implications of blocking SIMs for non-filers, highlighting potential issues this action may cause.
This move follows an agreement made just a day prior between FBR and telecom operators to initiate the blocking of mobile SIM cards for non-filers, targeting a daily rate of approximately 5,000 SIMs.
Previously, cellular mobile companies had resisted blocking SIM cards for 506,000 identified non-compliant taxpayers, citing technical and operational challenges. Telecom companies have also pointed out the legal complexities of implementing the directives from FBR.
Notably, on April 30, the FBR issued an income tax general order mandating authorities to block the SIM cards of over 506,000 identified non-filers and non-compliant taxpayers.