Telcos to block 5,000 SIMs of non-filers on daily basis

The Federal Board of Revenue (FBR), Pakistan Telecommunication Authority (PTA), and telecom operators have reached an agreement regarding the nationwide blocking of SIM cards of non-filers.

A statement issued on Friday confirmed that telecom companies will disable the mobile phone SIMs of 506,671 individuals who failed to file their tax returns for the 2023 fiscal year, under the Income Tax General Order (ITGO).

According to FBR officials, telecom operators have agreed to manually block SIMs in small batches. The details required to block 5,000 SIMs of non-filers on a daily basis were provided to the telecom operators on May 10. 

“Subsequent batches will be sent to them on a daily basis. Moreover, telecom operators have also commenced sending messages to [the] non-filers regarding the blocking of SIMs for intimation purpose[s],” the statement read.

FBR anticipated that the deactivation of non-filers mobile phone SIMs would lead to a rise in tax collection.

The government has also authorised the tax body to implement Plan B in case of non-compliance by operators. 

According to FBR sources, Plan B entails imposing additional withholding tax if non-filer SIMs remain active beyond May 15th.

An additional 2.5% tax on non-filer SIMs is also under consideration.

The FBR has warned of potential legal action against telecom companies if they defy the ITGO and fail to deactivate non-filer SIMs by May 15th. 

The sources added that the tax authority would hold a discussion in this connection and move the court against the telecom companies.

Earlier, telecom companies had expressed reservations regarding the FBR's ITGO, citing their obligation to provide uninterrupted service to customers, with exceptions only in specific circumstances as per the Telecom Act.

However, after a series of meetings, they were able to reach a consensus with the FBR.