ISLAMABAD: After the refusal of the Pakistan Telecommunication Authority (PTA), the Federal Board of Revenue (FBR) has decided to summon all mobile phone operators to ensure the blockage of SIMs of 506,671 non-filers by the deadline of May 15, 2024.
A top FBR official told that the Pakistan Telecommunication Authority’s (PTA) refusal has no legal authority. The SIMS would be blocked by the cellular companies. The FBR will call for an emergency meeting of all telecom operators, instructing them to block SIMs by the specified deadline or face legal consequences.
The telecom operators would be required to comply with the FBR’s instructions, and the PTA’s stance poses no legal issues for the FBR. The PTA’s rejection of the FBR enforcement drive would have no legal implications on the tax machinery, the sources added.
The FBR had issued an Income Tax General Order No. 01 of 2024 to enforce the filing of returns by the persons who are not appearing on the active taxpayers list but are liable to file the Income tax return for tax year 2023 under the provisions of the Income Tax Ordinance 2001.
It is worth mentioning that PTA has opposed blocking SIM cards, claiming that it is not compatible with their system.
The telecom regulator added that legally, PTA is not obliged to block SIMs and the Income Tax Ordinance 2021 does not apply to PTA. Blocking a large number of SIMs will significantly harm digitalization as well as the telecom economy.
It could also jeopardize foreign investment in the telecom sector, PTA warns. Banking transactions, e-commerce, and mobile account users will face issues as well, stated PTA.
The non-filers of income tax returns can verify their names from the list of 506,671 individuals specified in the Income Tax General Order No 01 of 2024 available on the FBR’s website.
The mobile SIMs in respect of the mentioned individuals will remain blocked until restored by the FBR or the Commissioner of Inland Revenue having jurisdiction over the person.
The Pakistan Telecommunication Authority (PTA) and all telecom operators are required to ensure the compliance of this ITGO with immediate effect. The compliance report in this regard is to be furnished to the FBR on May 15, 2024, positively, the FBR added.
