GSMA Worries Over Pakistan's SIM Deactivation Policy

The GSM Association (GSMA), a global organization representing mobile network operators worldwide, has expressed worries about the recent Income Tax General Order (ITGO) issued by the Federal Board of Revenue (FBR) on April 30, 2024. The ITGO's objective is to deactivate mobile SIM cards of individuals who have not filed their income tax returns. This move has sparked debates on the balance between tax compliance and citizen convenience.

Before the ITGO, the FBR identified more than 500,000 non-filers whose SIM cards would be immediately blocked by the Pakistan Telecommunication Authority (PTA) and telecom operators. The ITGO specifically targets individuals not listed as active taxpayers but who are obligated to file tax returns for the year 2023. The blocked SIM cards will remain inactive until authorized by the FBR or the relevant tax authority.

Cellular mobile operators (CMOs) have also voiced their concerns regarding the abrupt decision to block SIM cards, fearing adverse effects on telecom customers. GSMA emphasized that such actions could impede Pakistan's digital advancement and harm its international reputation. The association highlighted potential repercussions on citizen rights, service accessibility, and gender disparities in SIM card registration.

GSMA cautioned about potential disruptions to vital services like banking, e-commerce, and healthcare due to SIM deactivation. The organization emphasized the necessity for a balanced approach to tax compliance that encourages voluntary participation and economic inclusivity, benefiting both the government and the people of Pakistan.

The concerns raised by the GSMA shed light on the complexities of enforcing tax regulations while ensuring uninterrupted mobile services for citizens. As Pakistan navigates this issue, finding a middle ground that promotes tax compliance without hindering essential services will be crucial for the country's progress and the well-being of its people.