FBR is taking a controversial step to increase tax collection. They’ve blocked over 210,000 SIM cards belonging to users who haven’t filed tax returns.
This action stems from Pakistan’s low tax collection rate, with only a small fraction of the population filing income tax returns. Since April, FBR has directed Pakistan Telecommunications Authority (PTA) to block SIM cards, with some later unblocked upon tax payment.
The move has sparked mixed reactions. Some, like FBR official Bakhtiar Muhammad, see it as a necessary nudge towards tax compliance. However, others express concerns. Telecom companies and digital rights activists argue that blocking SIM cards could disproportionately impact people who don’t meet the income threshold for tax filing and infringe on their right to communication.
The situation highlights the challenge Pakistan faces in boosting its revenue base while respecting individual rights. The government seeks to improve its financial standing, but critics warn against measures that could disrupt essential services and deter investment.
The effectiveness and long-term impact of this tactic remain to be seen. Pakistan will need to navigate this complex issue, balancing the need for increased tax collection with respect for fundamental rights and a healthy business environment.
