FBR: Over 11,000 SIM Cards of Non-Filers Blocked to Date
Over 11,000 Mobile Phone SIMs Blocked by FBR for Non-Tax Filers
An official statement revealed that the Federal Board of Revenue (FBR) has taken action to block more than 11,000 mobile phone SIM cards belonging to individuals who haven’t paid taxes.
FBR spokesperson Bakhtiar Mohammad disclosed that as of May 22, a total of 11,252 SIM cards had been blocked under the Income Tax General Order. He stressed the FBR’s commitment to fostering tax compliance and nurturing a culture of taxation.
Earlier reports widely covered by the media indicated that the Islamabad High Court (IHC) had issued a stay order on the government’s decision to block SIM cards of those who failed to file tax returns in 2023.
In contrast to previous reports, a Dawn.com correspondent clarified that the Islamabad High Court (IHC) specified that the stay order did not concern the blocking of SIM cards. Rather, it was exclusively related to actions against the petitioner, private telecom operator Zong.
During a recent hearing of the case, IHC Chief Justice Aamer Farooq made a clarification, stating, “Let me clarify that the stay order was not on blocking SIMs but only to provide protection to the petitioners.” He further noted, “The government’s order to block SIMs is still in the field,”
On April 30, the FBR released a comprehensive list of 506,671 individuals who hadn’t filed their tax returns for 2023. Consequently, their mobile phone SIMs were set to be promptly blocked as a penalty. However, telecom providers objected to this decision, leading to a delay in execution despite its parliamentary mandate.
On May 4, the Pakistan Telecommunication Authority (PTA) refused to comply with the FBR’s directive, stating that it fell outside its jurisdiction. Consequently, the order was considered to lack legal binding.
Following this, telecom companies collectively raised concerns with the Ministry of IT, arguing that the FBR’s decision to block SIMs of non-filers was rushed and would negatively impact telecom customers.
The cellular mobile operators (CMOs) stated in their letter that they were obligated to maintain uninterrupted services for their customers, except in cases specified in the Telecom Act and relevant regulations. They emphasized that there were no provisions allowing CMOs to disconnect or block the service of any customer.
Finally, on May 10, telecom operators agreed to begin the manual blocking process in small batches for non-filers, resolving a week-long standoff over the implementation of the tax drive to expand the tax base.
This agreement was reached after crucial meetings between the FBR, the Pakistan Telecommunication Authority (PTA), and telecom operators, aiming to implement Income Tax General Order No. 1, issued under Section 114 B of the Income Tax Ordinance 2001.
