In a recent development, the Federal Board of Revenue (FBR) has unblocked mobile SIMs for 103,000 individuals who have complied with tax return filings. This move comes as part of the FBR’s broader initiative to enforce tax compliance and streamline the SIM blockage process.
Background and Current Status
Official documents reveal that the FBR had previously blocked a total of 265,000 SIMs belonging to individuals who failed to file their income tax returns. This action was implemented under the Income Tax General Order (ITGO) No 1 of 2024, which aims to incentivize tax compliance by linking it to mobile services.
In response to the enforcement of this order, the FBR established a Joint Working Group (JWG) in May 2024. This group, consisting of tax officials and representatives from telecom operators, was tasked with managing and overseeing the SIM blockage process for non-filers.
Implementation Challenges and Solutions
Initially, there was some reluctance from the Pakistan Telecommunication Authority (PTA) and telecom companies regarding the immediate blocking of SIMs for non-filers. However, after multiple negotiations with the FBR, a compromise was reached. Telecom operators agreed to implement the SIM blockages in phased batches rather than all at once.
A comprehensive list of 506,671 non-filers was provided to the PTA and telecom companies, detailing those whose SIMs were to be blocked. This initiative highlights the FBR’s ongoing efforts to ensure tax compliance and enhance revenue collection through innovative measures.
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