Pakistan has taken a robust stance against tax evasion. The Federal Board of Revenue (FBR) has directed the Pakistan Telecommunication Authority (PTA) and telecom companies to block the mobile phone SIMs of more than 500,000 non-filers.
This move comes amidst Pakistan’s ongoing financial crisis, with the FBR emphasizing its commitment to tax compliance. The FBR has publicly named these non-filers, highlighting that despite having taxable income, they have neglected to file income tax returns.
Under Section 114B of the Income Tax Ordinance 2001, the FBR has been granted powers to disconnect utility connections and block SIMs of non-filers. The SIMs could be restored upon filing tax returns for the year 2023.
Despite identifying around two million potential tax dodgers, telecom companies expressed concerns about the feasibility of blocking such a large number of SIMs. After consultations, it was decided to initially block half a million SIMs.
The FBR’s directive mandates immediate compliance from PTA and all telecom operators. It also requires PTA to submit a report on the matter by May 15, 2024.
The FBR reiterated that these 506,000 individuals have the financial capacity to file income tax returns but have consistently ignored reminders and warnings. This stringent enforcement aims to widen tax collection and ensure greater fiscal accountability in Pakistan