Pakistan’s telecom regulator, Pakistan Telecommunication Authority (PTA), is reevaluating a recent order by the Federal Board of Revenue (FBR) to block phone SIM cards of individuals who did not file their 2023 tax returns.
The FBR’s directive targeted over 506,671 individuals, potentially impacting millions of SIM cards as some users hold multiple subscriptions. However, PTA expressed concerns about the legality and effectiveness of the measure.
“We are currently reviewing FBR’s decision and consulting with mobile operators and stakeholders,” PTA said in a statement. “Our priority is to ensure compliance with regulations while protecting consumer interests.”
The move has sparked criticism, with cellular operators threatening legal action. Industry officials argue the FBR should focus on simplifying the tax filing process and expanding the tax net rather than resorting to punitive measures. Critics also point out that the blocked individuals may include salaried taxpayers who simply haven’t filed due to a cumbersome system.
FBR’s strategy contrasts with practices in many countries that incentivize tax filing, even for low or no-income earners, by offering refunds. While FBR offers lower tax rates for filers, critics argue it’s a less effective approach compared to tackling loopholes exploited by high-income earners who avoid paying their fair share.
