ISLAMABAD: The Federal Board of Revenue (FBR) has yet to make a decision on its earlier proposal to block SIMs (subscribers identification modules) of tax non-filers.
According to sources, the mobile phone companies have refused to block more than 500,000 SIMs in one go for fear of massive losses. The Pakistan Telecommunication Authority in a letter to the FBR conveyed concern and opposed the drastic measure.
The FBR chairman and other top officials have been deliberating with the mobile companies’ heads to sort out the issue. Sources say the FBR has failed to convince the telecom companies to block SIMs of tax defaulters and non-filers.
The PTA urged the Federal Board of Revenue (FBR) to consider other measures. It said such a large number of SIMs could not be blocked as it would entail legal issues. In many cases, it said, SIMs had been issued in the name of women and children and were used by men.
Blocking SIMs, it said, would have a negative impact on digital transformation and foreign investment.
What FBR proposed?
The FBR, in a bid to tighten the screw on non-filers, decided to block the mobile SIMs of 506,000 non-filers in the first phase. The Income Tax General Order was issued to materialise the initiative.
The FBR said it identified those people whose income tax returns had not been filed.
“Despite being able to pay income tax, they are not filing returns and therefore they are not included in FBR Active Tax Payers List,” it said.
According to the FBR, the mobile phone connections of those who had not filed income tax returns could be closed any time.
Sources said a list of 500,000 individuals on whom the authorities are zooming in just represents the first phase and has been given a final shape after detailed discussions involving the FBR, the PTA and the mobile phone operators.
It is reported that the FBR had actually identified two million possible tax evaders, but the mobile phone companies requested that they could not block such a huge number of SIMs in one go.
