Pakistanthe authorities launched a blockade on the mobile SIM cards of around 506,671 people who have not filed their income tax returns for the year 2023. The Federal Board of Revenue (FBR) has issued an Income Tax General Order (ITGO), requiring that these cards SIM remain blocked until the FBR or the competent tax commissioner reinstates them.
Pakistan Telecommunication Authority (PTA) and telecom operators have been ordered to immediately implement ITGO No. 01 of 2024, with a deadline of May 15 for a compliance report, as reported by Dawn News.
The FBR has identified around 2.4 million potential taxpayers missing from tax records and issued notices to them. From this group, more than half a million people were selected for SIM blocking, based on their inability to file returns for 2023 despite having declared taxable income in the last three years.
As of March 1, 2024, the FBR's Active Taxpayer List (ATL) recorded 4.2 million taxpayers, a slight increase from the 3.8 million returns filed during the same period of the previous year. The total tax returns received in 2022 are 5.9 million.
The FBR official said that SIM cards would be automatically reactivated for those who submit their 2023 income tax returns. The ATL is updated every Monday and every Tuesday, those listed on the ATL will be flagged for restoration of the SIM card from the PTA and telecommunications companies. The process is designed to be automatic, without requiring separate recovery procedures.
This SIM card blocking strategy is part of the FBR's efforts to encourage submission of tax returns, especially among low-income earners, to increase the number of tax filers. The FBR has also implemented higher withholding tax rates for non-filers, in a bid to broaden the tax base and encourage consistent tax filing. Sources indicate that people who file at least once can avoid these higher rates in subsequent years, with non-filers often being those who only filed once.
Pakistan Telecommunication Authority (PTA) and telecom operators have been ordered to immediately implement ITGO No. 01 of 2024, with a deadline of May 15 for a compliance report, as reported by Dawn News.
The FBR has identified around 2.4 million potential taxpayers missing from tax records and issued notices to them. From this group, more than half a million people were selected for SIM blocking, based on their inability to file returns for 2023 despite having declared taxable income in the last three years.
As of March 1, 2024, the FBR's Active Taxpayer List (ATL) recorded 4.2 million taxpayers, a slight increase from the 3.8 million returns filed during the same period of the previous year. The total tax returns received in 2022 are 5.9 million.
The FBR official said that SIM cards would be automatically reactivated for those who submit their 2023 income tax returns. The ATL is updated every Monday and every Tuesday, those listed on the ATL will be flagged for restoration of the SIM card from the PTA and telecommunications companies. The process is designed to be automatic, without requiring separate recovery procedures.
This SIM card blocking strategy is part of the FBR's efforts to encourage submission of tax returns, especially among low-income earners, to increase the number of tax filers. The FBR has also implemented higher withholding tax rates for non-filers, in a bid to broaden the tax base and encourage consistent tax filing. Sources indicate that people who file at least once can avoid these higher rates in subsequent years, with non-filers often being those who only filed once.
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