The telecommunications sector in Pakistan has reached an agreement with the Federal Board of Revenue (FBR) to deactivate the Subscriber Identity Modules (SIMs) of more than 500,000 individuals who have not filed their tax returns. However, the telecom companies have asked for a period of one to 1.5 weeks to carry out this task effectively.
This decision follows a series of meetings between FBR Chairman Malik Amjed Zubair Tiwana, telecom company officials, and representatives from the Pakistan Telecommunication Authority (PTA) over three days. The main agenda of these meetings was the enforcement of the Income Tax General Order (ITGO) issued by the FBR, which mandates the deactivation of SIMs belonging to 506,671 non-filers for the year 2023.
The telecom companies have voiced their opposition to the SIM-blocking measure, noting that although the law to block SIMs of non-filers has been in place for two years, it has not been strictly enforced thus far. They argue that implementing the measure abruptly after two years is unfair. Additionally, they point out that the FBR has the authority to disconnect power and gas supplies to non-filers under the same law, suggesting that this provision should be enforced as well.
The FBR clarified that it is within the government’s discretion to determine how and when to exercise its powers, emphasizing that it is not mandatory to simultaneously implement all powers conferred by the law. They also highlighted the importance of blocking SIMs of non-filers for documenting the country’s economy, despite the temporary loss of revenue for both the telecom companies and the FBR.
The telecom companies proposed that initially, a smaller number of SIMs, ranging from 20,000 to 25,000, should be blocked. They also suggested that SIMs of non-filers with multiple connections could be deactivated one by one.
FBR officials explained to the telecom companies that a formal law enacted by the parliament mandated the blocking of mobile phone SIMs of non-filers and emphasized the necessity of implementing the law, warning of strict action against violators.
In subsequent meetings, the telecom companies expressed their willingness to comply with the decision to block SIMs of non-filers and requested time from the FBR to prepare proposals based on feasible solutions.
