FBR's order to block mobile SIMs of users who do not file income tax is illegal.
FBR Orders to Block Mobile Phone SIM Cardsof Over 5 lack Non-Filers
By Pulse of PK | April 30, 2024
Tightening the noose around non-filers, the federal government in Pakistan has taken strict action against tax evaders. The Federal Board of Revenue (FBR) recently directed the Pakistan Telecommunication Authority (PTA) and other telecom companies to block mobile phone SIMs of over 500,000 individuals who have not filed income tax returns.
Background
The FBR made public the names of 506,671 non-filers who were not submitting income tax returns despite having taxable income. In response, the FBR issued an Income Tax General Order (ITGO) under section 114B of the Income Tax Ordinance, 2001. This order aims to disable the mobile phone SIMs of individuals who are not on the active taxpayer list but are liable to file income tax returns for Tax Year 2023.
Key Points from the ITGO:
Blocking of SIMs: The FBR has ordered the blocking of mobile phone SIMs for non-filers. As a penalty, these individuals will face immediate SIM deactivation.
Approval for Restoration: Once blocked, the mobile SIMs cannot be restored without the approval of the FBR or the relevant Commissioner of Inland Revenue. The SIMs will remain blocked until authorized for restoration.
Prime Minister’s Stance
The development comes shortly after Prime Minister Shehbaz Sharif hinted at “massive economic reforms” during a special meeting of the World Economic Forum (WEF) in Riyadh, Saudi Arabia. In his closing plenary speech, the premier emphasized deep-rooted reforms and meaningful austerity measures to steer the country out of the economic crisis.
Legal Implications
While the FBR’s move aims to encourage tax compliance, it has also raised legal questions. Critics argue that blocking mobile SIMs without due process infringes upon citizens’ rights. As per the ITGO, the FBR can take action against those obligated to submit income tax returns but failing to do so1. However, concerns remain about the proportionality of this measure and its impact on citizens’ communication services.
Conclusion
The FBR’s decision to block mobile phone SIMs of non-filers is a significant step toward tax compliance. However, balancing enforcement with citizens’ rights remains a delicate task. As the government continues its economic reforms, it must ensure that legal procedures are followed and citizens’ rights are respected.
Please note that this article provides an overview of the situation and does not constitute legal advice. .
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