Mohsin Siddiqui (Chief Reporter)
Telecom operators have agreed to commence the manual blocking process in small batches for non-filers, bringing an end to the week-long standoff over the implementation of the tax machinery drive aimed at expanding the tax base.
The decision follows crucial meetings between the Federal Board of Revenue (FBR), the Pakistan Telecommunication Authority (PTA), and telecom operators to enforce Income Tax General Order No. 1, issued under Section 114 B of the Income Tax Ordinance 2001.
On April 30, the FBR unveiled a comprehensive list of 506,671 individuals who failed to file their tax returns for 2023, leading to the prompt blocking of their mobile phone SIMs as a penalty. However, telecom providers initially objected to the decision, delaying its execution despite being mandated by an act of parliament.
In an official announcement, the FBR revealed that after extensive deliberations, telecom operators have agreed to initiate the manual blocking process in incremental batches until their systems are fully prepared to automate it.
The first batch, comprising 5,000 non-filers, has been communicated to telecom operators for immediate compliance regarding SIM blocking. Subsequent batches will be transmitted daily, with telecom operators also initiating communication with non-filers regarding SIM blocking for notification purposes.
The FBR conducted significant meetings with the PTA and telecom operators nationwide to ensure the effective implementation of ITGO (Income Tax General Order). These discussions focused on enforcing measures to deactivate mobile phone SIMs for non-filers for the tax year 2023.
Numerous discussions were held to streamline the process and ensure alignment with tax regulations, underscoring the commitment of both FBR and telecom operators to uphold tax compliance standards.
This collaborative effort marks a significant stride in enhancing tax collection and enforcement mechanisms. The FBR appreciates the cooperation of all stakeholders involved and looks forward to continued collaboration to strengthen tax compliance in Pakistan.
Identifying 2.4 million potential taxpayers absent from tax rolls, the FBR issued notices to these individuals. Over 0.5 million individuals were selected for SIM blockade, meeting specific criteria of having declared taxable income in one of the past three years while failing to file returns for tax year 2023.
As per the Active Taxpayers List (ATL), the FBR received 4.2 million taxpayers until March 1, reflecting a marginal increase compared to the corresponding period last year, when 3.8 million returns were received. In tax year 2022, the FBR received 5.9 million income tax returns.
