Islamabad, August 9, 2025 – The Federal Board of Revenue (FBR) has warned of legal action against telecom companies and internet service providers (ISPs) for failing to share crucial information about their subscribers.
The move comes as tax authorities tighten measures to investigate cyber fraud and trace suspected IP addresses.
Under a newly added sub-section (5) to Section 38B of the Sales Tax Act, 1990, the Commissioner Inland Revenue now has the authority to obtain subscribers’ details, including Internet Protocol (IP) addresses, from any ISP, telecom operator, or the Pakistan Telecommunication Authority (PTA) for inquiries related to sales tax fraud.
In a recent high-profile case, the Federal Tax Ombudsman (FTO) reported that a suspected IP address used in a fraud incident on April 29, 2025, was traced to Battagram, KPK. The telecom provider Zong (CM Pak Ltd) was asked multiple times to share the subscriber’s details but failed to respond. Other suspicious IP addresses were traced to Islamabad (PTCL/Zong) and Frankfurt, Germany (Digital Ocean LLC), the latter likely using a VPN.
FBR sources revealed that, effective July 1, 2025, all telecom and mobile operators are legally bound to share accurate subscriber information. Failure to comply will result in strict legal consequences. Authorities also plan to implement enhanced security measures to prevent VPN misuse on FBR’s online portal, ensuring accurate identification of subscribers involved in fraudulent activities.