PTA opposes proposal to block 500,000 SIMs. What's other option for FBR?
Pakistan
FBR had proposed blockage of a large number of SIMs to rein in non-filers
ISLAMABAD (Dunya News) - The Pakistan Telecommunication Authority (PTA) has opposed blocking mobile SIMs for non-filing of tax returns and urged the Federal Board of Revenue (FBR) to consider another measure.
The FBR had proposed to block 500,000 SIMs of those who fail to file tax returns.
More to read: FBR set to block SIMs of over 500,000 non-filers
The PTA said SIMs should not be blocked to avoid legal difficulties. It said in many cases the SIMs issued in the name of women and children were used by men.
Blocking SIMs, it said, would have a negative impact on digital transformation and foreign investment.
What FBR decided
In a bid to tighten the screw on non-filers, the Federal Board of Revenue (FBR) decided to block the mobile SIMs of 506,000 non-filers. The Income Tax General Order was issued to materialise the initiative.
As per the order, the FBR identified those people whose income tax returns had not been filed.
“Despite being able to pay income tax, they are not filing returns and therefore they are not included in FBR Active Tax Payers List,” the statement added.
According to the FBR, the mobile phone connections of those who have not filed income tax returns could be closed any time.
The institution sought a detailed report from the Pakistan Telecommunication Authority.
Sources said a list of 500,000 individuals on whom the authorities are zooming in just represents the first phase and has been given a final shape after detailed discussions involving the FBR, the PTA and the mobile phone operators.
It is reported that the FBR had actually identified two million possible tax evaders, but the mobile phone companies requested that they could not block such a huge number of SIMs in one go.
The current economic crisis is a result of dismal tax-to-GDP ratio in Pakistan – one of the lowest in Pakistan – which is a product of the government failure to expand the tax base, resulting in an alarming increase in indirect taxation and further burdening those who already pay the amount.
