FBR instructs telecom companies to deactivate non-filers' SIM cards

In a bid to tackle tax evasion and enhance revenue generation, the Federal Board of Revenue (FBR) has instructed telecommunication companies to deactivate more than 9,000 SIM cards owned by non-filers across the country. This move comes amidst challenging economic conditions, with the government aiming to boost tax compliance.

The decision to block these SIM cards was mandated by parliament and is now being enforced by the government. The Pakistan Telecommunication Authority (PTA) has clarified that it does not possess the authority to carry out SIM card deactivations.

Two major telecom companies have already taken action by blocking 3,500 SIM cards belonging to non-filers. However, they have assured that individuals who promptly file their tax returns will have their SIMs unblocked. The Islamabad High Court (IHC) has upheld the government's stance on this matter, emphasizing that the court's stay order does not apply to the blocking of SIM cards.

Chief Justice of the IHC highlighted that the stay order was intended to protect the petitioner and not to impede the process of SIM blocking. This initiative is seen as part of the federal government's broader economic reform agenda.

Recently, the FBR announced that telecom companies will manually deactivate SIM cards in small batches until their systems are fully automated. The initial batch of 5,000 non-filers has been identified, with more to follow on a daily basis. A total of 500,000 SIM cards were initially earmarked for deactivation due to non-compliance with tax filing requirements.

The crackdown on non-filers through the deactivation of SIM cards is a significant step towards promoting tax compliance and combating tax evasion in Pakistan. This measure not only aims to boost government revenue but also underscores the importance of fulfilling tax obligations for all citizens. As the government continues its economic reforms, such initiatives play a crucial role in ensuring a fair and transparent tax system for the benefit of the country's overall financial health.