In a bid to bolster tax compliance and enforcement measures, telecom operators in Pakistan have initiated the daily blocking of SIM cards belonging to non-filers of income tax returns.
This move comes following assurances given to Finance Minister Muhammad Aurangzeb during a meeting held at the Ministry of Finance, where telecom companies pledged to block 5,000 SIMs of non-filers on a daily basis.
The process kicked off with the blocking of the first batch of 5,000 SIM cards out of a total of half a million identified for suspension. High-ranking officials from both the Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) were present during the meeting, where agreements were reached to implement the measures outlined in the Income Tax General Order No 1 of 2024.
Under this agreement, telecom operators have commenced the blocking of SIM cards in accordance with the FBR’s directives. Individuals identified as non-filers have been duly notified through messages sent by the tax authorities, warning them of the impending blockage of their mobile phone connections if they fail to file their tax returns.
The process involves a phased approach, with batches of 5,000 non-filers being sent to telecom companies on a daily basis for SIM blocking. While the initial phase requires manual intervention, efforts are underway to streamline the process through automation once the systems are fully equipped.
In addition to blocking SIM cards, telecom operators have taken proactive steps by sending notifications to non-filers, informing them of the imminent suspension of their mobile services. This collaborative effort between the FBR and telecom companies underscores their commitment to upholding tax regulations and fostering compliance among taxpayers.
The initiative holds significance not only in terms of revenue collection but also in strengthening enforcement mechanisms aimed at curbing tax evasion. By targeting non-filers through the suspension of essential services such as mobile connectivity, authorities aim to compel individuals to fulfill their tax obligations and contribute towards the country’s economic development.
As subsequent batches of non-filers are identified and communicated to telecom operators, the implementation of daily SIM blocking is expected to intensify, marking a significant milestone in Pakistan’s efforts to enhance tax compliance and revenue generation.