FBR to block SIM cards of over 500,000 Pakistanis not filing tax returns

The Pakistani government has instructed the Pakistan Telecommunication Authority (PTA) and telecom companies to block the SIM cards of more than 500,000 non-filers.–File photo

In a proactive measure against people not filing their tax returns amid the ongoing financial challenges confronting the country, the Pakistani government has instructed the Pakistan Telecommunication Authority (PTA) and telecom companies to block the SIM cards of more than 500,000 non-filers.

According to a statement from the Federal Board of Revenue (FBR), issued under section 114B of the Income Tax Ordinance, 2001, the FBR has issued an Income Tax General Order (ITGO) to disable mobile phone SIM cards for individuals not listed on the active taxpayer registry but required to file income tax returns for Tax Year 2023.

This directive follows Prime Minister Shehbaz Sharif’s indication at a special meeting of the World Economic Forum (WEF) in Riyadh, Saudi Arabia, regarding forthcoming “massive economic reforms” to address the country’s economic challenges.

The FBR has urged the PTA and telecom operators to promptly comply with the ITGO. The affected mobile SIM cards will remain blocked until restored by the FBR or the relevant Inland Revenue Commissioner.

A compliance report is expected from telecom operators by May 15. The FBR has identified 506,671 non-filers who, despite having taxable income, have not filed income tax returns and are not part of the active taxpayer list.

These measures aim to bolster tax compliance and broaden the tax base, aligning with the FBR’s commitment to a fair and equitable tax system.

Non-filers can restore their mobile phone SIM cards by filing their tax returns for the year 2023. The FBR, empowered under Section 114B of the Income Tax Ordinance 2001, has been authorized to disconnect utility connections and block mobile SIM cards in cases of non-compliance.

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Last year, the FBR established 145 district tax offices nationwide to bring new taxpayers into the tax net. Consultations with the PTA have been held to identify SIM cards of under-filers, who despite being notified by the FBR, failed to file their tax returns.

The government’s initiative to register traders under the Tajir Dost Scheme aims to broaden the tax base. Traders who fail to register by the deadline will face monetary penalties under section 182 of the Income Tax Ordinance 2001.

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