By Staff Reporter
ISLAMABAD: Pakistan’s telecommunications regulator has refused to comply with a demand by the country’s tax authority to block the mobile phone services of over half a million individuals who failed to file tax returns in 2023.
The Pakistan Telecommunications Authority (PTA) said the order issued by the Federal Bureau of Revenue (FBR) was not within its jurisdiction and would have “no legal binding effect” as it was inconsistent with the applicable legal framework.
The FBR had released a list of 506,671 non-filers and ordered telecom providers to block their SIM cards, but the PTA pushed back, citing concerns that the move would have an adverse impact on social norms and deprive children and female family members of communication for educational activities.
The FBR’s demand, outlined in Income Tax General Order No. 01 of 2024, called for immediate compliance from the PTA and telecom providers to block 506,671 non-filers’ SIMs until they are restored by the FBR or the Commissioner Inland Revenue.
“The enforcement of Section 114-B of the Income Tax Ordinance, 2001, does not fall within the jurisdiction of the PTA,” the authority said, referring to the order dated April 29, 2024.
The PTA emphasised that the ITGO would have no legal binding effect and raised concerns over the need to verify factual issues related to the usage of SIMs against Computerised National Identity Cards (CNICs).
The PTA also highlighted the societal repercussions of the FBR’s directive, noting that only 27 percent of SIMs are registered against female CNICs in Pakistan, where male members typically register SIMs in their names.
“It may also have an adverse impact on the confidence of foreign investment in the telecom sector including the objectivity of digital transformation,” the PTA said.
“As a result of blocking SIMs, multiple issues with regard to banking transactions, e-commerce, online business activities, remittance directly into the mobile money accounts and financial support to family members as well as e-health activities carried out through mobile connectivity will also emerge.”
To mitigate these issues and avoid legal complications, the PTA suggested alternative measures to improve tax filing compliance, such as awareness campaigns and SMS notifications, rather than immediate penal actions.
The authority called for a comprehensive review of the matter in consultation with relevant stakeholders, including the Ministry of Information Technology and Telecom, to find a balanced solution.
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