ISLAMABAD (Dunya News) – The Federal Board of Revenue (FBR) has blocked more than 9,000 SIMs of non-filers as part of its drive to boost tax revenue and promote documentation.
According to a spokesperson for the FBR, the board held a meeting with the mobile phone companies and informed them about the decision to block the SIMs.
However, the Pakistan Telecommunication Authority (PTA) has distanced itself from blocking the SIMs, sources say.
Sources say around 3,500 SIMs of non-filers have been blocked by two telecom companies. Thousands of other SIMs also have been blocked.
The SIMs of citizens who will file the return will be restored immediately.
The FBR spokesperson said one telecom company had obtained an injunction from the Islamabad High Court (IHC).
IHC gives a go-ahead
Earlier, Islamabad High Court Chief Justice Aamer Farooq said the court did not stop authorities from blocking SIMs but barred them from taking action against a private company.
The IHC conducted hearing of a petition against an injunction to stop action against a private company related to SIMs blockage.
IHC Chief Justice Aamer Farooq remarked that media did not report court proceedings in a correct way. He said the court did not bar blockage of SIMs of non-filers.
FBR roadmap
The Federal Board of Revenue (FBR) earlier decided to block the mobile phone SIMs of more than 500,000 non-filers. It issued the Income Tax General Order to materialise the initiative.
The FBR said it had identified those people whose income tax returns had not been filed.
“Despite being able to pay income tax, they are not filing returns and therefore they are not included in FBR Active Tax Payers List,” the statement added.
According to the FBR, the mobile phone connections of those who have not filed income tax returns could be closed any time.
The institution sought a detailed report from the Pakistan Telecommunication Authority. The PTA, on the other hand, opposed the move and challenged the case in court. Telecom companies also challenged it by declaring it a cruel move which would financially trouble them.
Sources said a list of 500,000 individuals represented the first phase and had been given a final shape after detailed discussions involving the FBR, the PTA and the mobile phone operators.