- As per the directive of the Government of Pakistan, the telecom companies took the step
- The mobile phones of other people who do not pay tax will be SIM blocked
- FBR warned 5 thousand people
In the neighboring country of Pakistan, the government there has taken a drastic step for those who do not pay taxes on time. According to which the SIM card of the non-payer should be blocked by the telecom company. For this, the Income Tax Department of Pakistan sent messages to the customers that pay the tax on time otherwise the SIM in your mobile phone will be blocked by the government, but till then people ignored this message of the government and did not pay the tax.
Finally, according to the directive of the government, the telecom companies there have blocked the SIM cards of 3,500 customers out of 5,000. So people are eager to call and watch reels on phone. But despite many messages from the government, no one filed the tax on time, due to which the telecom companies took necessary steps as per the government’s order. Now all over Pakistan there is an uproar over the SIM card block.
According to the report, the telecom operators had promised the Federal Board of Revenue that they would be subject to the Income Tax General Order. This action forced 506,671 people to file their returns for 2023.
The FBR also sent messages to around 5,000 people, warning them that their mobile phones would be SIM blocked if they did not file their returns. It has also sought details of blocked SIMs from telecom operators.
According to the notification, the board has sent a second batch of 5,000 non-filers to telecom companies, who have agreed to start the process of manual blocking of SIMs in small batches till their systems are fully equipped to automate. The third batch will be dispatched today. According to the information, an automated system will be introduced by the telecom companies to check the blocked SIM. Telecom companies have submitted preliminary compliance reports to the FBR during its meeting on Saturday on blocking messaging services and SIMs of the first batch of non-filers.
Telecom companies protested the FBR’s decision
Despite the issuance of the ITGO by the FBR, telecom companies protested the move by writing to the Ministry of IT and the Pakistan Telecommunication Authority (PTA), stating that they would be required to provide services to their customers under the Telecom Act and related regulations. It was mandatory to provide continuous services except in exigent circumstances.
He said there are no instances where they can disconnect or block a customer’s service. However, according to a statement issued a day ago, the telecom operator agreed to block SIMs of non-filers after several meetings with the FBR.
90 percent withholding tax on non-filers
According to the information, the government is concerned about tax non-payment in Pakistan which also marks an important step towards enhancing its enforcement mechanism. Further, FBR has decided to impose 90 percent withholding tax on non-filers instead of 2.5 percent. Under the decision, 90 percent of withholding tax will be deducted through an automated system from mobile phone balances loaded by prepaid and postpaid non-filers. This means if a non-filer loads a mobile phone balance of Pakistani Currency (PKR) 100, PKR 90 will be automatically deducted and transferred to FBR.
Under the decision, 90 percent of the withholding tax will be deducted through an automated system from mobile phone balances loaded by prepaid and postpaid non-filers. Meaning if a non-filer Pakistani loads a mobile phone balance of Rs 100, Rs 90 will be automatically deducted and transferred to FBR.
According to the sources, if the non-filer does not bring his return system even though the SIM card is blocked, he will have to pay 90 percent additional tax for any new SIM purchased.
