ISLAMABAD: Chief Justice Aamer Farooq of the Islamabad High Court (IHC) clarified on Friday that he did not prevent authorities from blocking the SIMs of non-filers. Instead, the court’s order only restricted the government from taking action against telecom operators.
Earlier in the week, media reports indicated that the IHC had issued a stay order in response to a petition from a mobile operator challenging the Federal Board of Revenue’s (FBR) directive.
This development followed an agreement between the FBR and telecom operators to block SIMs of non-filers as part of the government’s efforts to curb tax evasion and enhance revenue collection amid challenging economic conditions.
Following extensive discussions, the FBR announced that telecom companies had agreed to start manually blocking SIMs in small batches until their systems could fully automate the process. The FBR communicated the first batch of 5,000 non-filers to telecom operators, with more batches to follow daily.
Previously, a plan was set to block 500,000 SIMs of individuals not listed as active taxpayers but required to file Income Tax Returns for Tax Year 2023.
During today’s hearing of a miscellaneous plea, the attorney general sought to have the stay order on blocking SIMs dismissed. Chief Justice Farooq clarified that the previous order did not halt the blockage of SIMs but rather protected private companies from government action.
The chief justice questioned whether laborers or poor individuals would be included in the tax net. The attorney general assured that poor people would not receive notices about SIM closures.
Chief Justice Farooq expressed concern that the FBR might indiscriminately include everyone, stressing the need for clear rules and regulations since not everyone could visit the FBR to clarify their status.
The attorney general informed the bench that notices would be issued to non-filers starting November 2023, and those who have paid their taxes need not worry. The FBR would restore SIMs upon satisfactory verification.
At the attorney general’s request, the IHC issued a notice on the government’s miscellaneous petition, seeking a response by May 22.
