The Pakistan Telecommunication Authority (PTA) announced its intention to closely examine the Federal Board of Revenue’s (FBR) recent directive to block the cellular phone SIMs of individuals who failed to file their tax returns for the year 2023. Before implementing this measure, the PTA is currently in discussions with cellular mobile operators and other stakeholders.
The telecom regulator emphasized that its primary goal is to ensure adherence to the regulatory framework and legal standards, while also protecting the interests of telecommunications consumers.
Recently, the FBR issued an Income Tax General Order (ITGO) directing the deactivation of mobile phone SIMs belonging to 506,671 non-compliant individuals. According to a senior FBR official, the action could result in approximately 1 million to 1.5 million SIM cards being blocked.
Read: FBR Blocks Over 500,000 SIM Cards of Non-Filers
This decision has sparked widespread criticism, as many affected individuals are salaried taxpayers who found the return filing process too cumbersome.
Cellular mobile operators have voiced concerns over the FBR’s decision and are considering legal action. A senior official suggested that the FBR should focus more on broadening the tax base and providing incentives for compliance, rather than resorting to punitive measures.
Countries often offer tax refunds to encourage filing, even for those with low or no income. While the FBR promotes lower rates for filers as an incentive, the reality is seen as far less supportive, essentially penalizing compliance less severely rather than rewarding it.