Pakistan’s tax collection agency, the Federal Board of Revenue (FBR), is ramping up its efforts to crack down on non-filing taxpayers by blocking their mobile phone SIM cards. As of Wednesday, telecom operators have blocked over 9,000 SIMs in accordance with FBR directives.
An FBR spokesperson confirmed that the process has accelerated, with the agency sharing new data on non-filers with telecom companies daily. So far, the FBR has identified 30,000 individuals whose SIMs are slated for blockage. However, the spokesperson acknowledged that blocking all 506,671 targeted SIMs will take time. These individuals are not registered as active taxpayers but are legally obligated to file income tax returns for the 2023 tax year.
Initially, telecom operators expressed reluctance due to legal concerns. However, a compromise was reached, with operators agreeing to manually block SIMs in smaller batches.
This action stems from an Income Tax General Order (ITGO) issued by the FBR in late April. The order targeted over half a million individuals who are not on the active taxpayer list and aimed to disable their mobile SIMs as a penalty for non-compliance. The FBR had previously set a deadline of May 15th for telecom companies to submit compliance reports.
The FBR’s initiative reflects a stronger stance on tax collection in Pakistan. By targeting non-filers’ mobile phone access, the agency hopes to incentivize tax filing and boost national revenue.
