Pakistan’s tax collection agency, Federal Board of Revenue (FBR), is on a collision course with Pakistan Telecommunication Authority (PTA) and telecom companies. The source of the tension? Over half a million mobile phone SIM cards belonging to tax non-filers remain active, despite an FBR directive to block them.
According to high-level sources, the FBR is prepared to take legal action if PTA and telecom companies fail to comply by May 15th. This could involve a petition filed in the Islamabad High Court. The frustration stems from over 10 days of inaction on the part of the PTA and telecom companies.
The move isn’t solely backed by the FBR. Sources report that the Finance Ministry is also on board, united in their pursuit of legal action against the telecom sector for defying the FBR’s order. The PTA and telecom companies have previously argued that blocking SIM cards goes against fundamental civil rights and exceeds their authority. These arguments appear to be falling on deaf ears with the authorities.
Looking beyond legal action, the government is exploring additional measures to incentivize tax compliance among non-filers. Proposals on the table include a 2.5% additional withholding tax specifically for non-filer SIMs, along with increased taxes on mobile phone and data recharge transactions.
The government’s firm stance is evident in these proposed actions. The May 15th deadline serves as a clear warning to non-filers, with significant consequences on the horizon for those who remain non-compliant.
