The Pakistan Telecommunications Authority (PTA) has declined the Federal Bureau of Revenue’s (FBR) request to block the mobile phone SIMs of over half a million individuals who did not file tax returns in 2023, it was revealed on Saturday.
Earlier this week, the FBR released a comprehensive list of 506,671 non-filers, stating that their mobile phone SIMs would be blocked promptly. The PTA and other telecom providers were instructed to comply with this directive.
This decision was outlined in Income Tax General Order (ITGO) no 01 of 2024, indicating that the mobile SIMs for these individuals would remain blocked until reinstated by the FBR or the Commissioner Inland Revenue.
In a statement issued on Friday regarding the enforcement of the ITGO, the PTA clarified that its implementation did not fall within its jurisdiction, rendering the order legally non-binding due to inconsistencies with the applicable legal framework.
The PTA highlighted the need to verify factual issues regarding the usage of SIMs against Computerised National Identity Cards (CNICs) before executing the order. It emphasized that procedural steps, including notices as provided in section 144-B of the Income Tax Ordinance, 2001, would be required by the tax collection authority.
Additionally, the authority expressed concerns about the adverse impact of executing the order on prevailing social norms. It noted that a majority of SIMs were registered under male names rather than females or juveniles, potentially affecting access to communication for educational purposes and impacting the confidence of foreign investors in the telecom sector.
Furthermore, the PTA cautioned that blocking SIMs could disrupt financial transactions such as online payments, remittances, online banking, and e-health activities, leading to multiple issues.
The PTA recommended that instead of blocking SIMs outright, the FBR should explore alternative methods to ensure better compliance with filing income tax returns, such as conducting awareness campaigns. It emphasized the need for a holistic review of the issue in consultation with all stakeholders, including the Ministry of Information Technology and Telecom.
In a separate statement issued today, the PTA informed the FBR that the ITGO required a review before implementation and disclosed that consultations with stakeholders had already commenced on the matter.
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