Islamabad High Court clarifies stance on SIM card blocking

The Islamabad High Court (IHC) recently addressed the issue of blocking SIM cards of tax non-filers, shedding light on the government's actions and the court's stance. The IHC clarified that it did not prohibit the government from taking such measures, contrary to previous reports.

During a hearing, Chief Justice Aamer Farooq highlighted that the court order only temporarily halted action against mobile companies, not the government's right to block SIM cards. The Federal Board of Revenue (FBR) had issued notices to thousands of individuals warning them of potential SIM card blockage for failing to file tax returns.

Justice Farooq emphasized the importance of accurate reporting, as the media had misconstrued the court's initial decision. The Attorney General for Pakistan (AGP) Mansoor Usman Awan clarified the tax regulations, ensuring that individuals outside the tax net would not face repercussions.

The IHC acknowledged concerns about the FBR's approach and accepted the government's appeal for further review. Questions were raised about the impact on individuals whose family members use SIM cards registered under their names but are not tax filers.

Despite the FBR's efforts to expand tax compliance by targeting non-filers, the Pakistan Telecommunication Authority (PTA) refused to implement the order, citing legal inconsistencies. The PTA suggested focusing on awareness campaigns through SMS to promote tax compliance.

The clarification by the Islamabad High Court regarding the blocking of SIM cards for tax non-filers underscores the complexities of tax enforcement and compliance in Pakistan. As the government seeks to broaden the tax base, balancing enforcement measures with public awareness and legal considerations remains a challenge. Enhancing tax compliance is crucial for sustainable revenue generation and economic development in the country.