Islamabad High Court Halts Government's SIM Card Blockage Plan

The Islamabad High Court (IHC) has intervened in the government's initiative to block SIM cards of individuals who have not filed their taxes. This decision was made following a legal challenge by a mobile phone company. The Chief Justice of the IHC has issued a stay order until May 27, pausing the implementation of the SIM card blockage.

Initially, the Federal Board of Revenue (FBR) and telecom companies had agreed to block SIM cards of non-filers as part of the government's efforts to combat tax evasion and increase revenue. The FBR had directed telecom operators to begin blocking SIMs of non-filers in stages until their systems could automate the process. The first batch of 5,000 non-filers was identified, with plans for additional batches to be blocked daily.

However, a dispute arose between the FBR and telecom operators when the operators resisted blocking 500,000 SIM cards of individuals who were not active taxpayers but were obligated to file tax returns for the Tax Year 2023. The telecom companies started informing non-filers about the impending SIM blockage for awareness purposes.

During the court proceedings, the petitioner's counsel argued that the government's amendment to the law violated Article 18 of the Constitution, which guarantees the right to conduct business freely. The counsel stressed that legislation should not infringe on the fundamental rights protected by the Constitution. It was also highlighted that the government lacked the authority to block SIM cards through legal amendments, cautioning that blocking over 500,000 SIMs could result in an annual loss of Rs1 billion.

The Islamabad High Court's decision to temporarily halt the government's plan to block SIM cards over tax filing issues reflects the importance of upholding constitutional rights and ensuring due process. This development underscores the significance of balancing tax enforcement measures with individual freedoms and legal safeguards. As the legal proceedings continue, the outcome will have implications for both tax compliance efforts and the protection of citizens' rights in Pakistan.