In a significant move aimed at tackling tax evasion, authorities in Pakistan have announced plans to block the mobile phone SIM cards of more than 500,000 individuals who have failed to file their tax returns for the year 2023. The Federal Board of Revenue (FBR) has identified these individuals as part of a larger effort to address tax non-compliance in the country.
The FBR’s decision, outlined in an official order, targets 506,671 individuals whose tax returns for 2023 remain outstanding. These individuals will see their mobile SIM cards blocked until they fulfill their tax obligations or receive clearance from the relevant tax authorities. The Pakistan Telecommunication Authority (PTA) and telecom providers have been instructed to implement this order promptly and submit a compliance report by May 15.
This action comes in the wake of the FBR identifying 2.4 million potential taxpayers who were not listed on the tax rolls. Notices have been issued to these individuals, signaling a broader effort to bring more taxpayers into the system and ensure compliance with tax regulations.
Among the criteria for selecting individuals for SIM card blockade is a history of taxable income declaration in previous years. Those who have declared taxable income but failed to file their returns for 2023 are among those targeted by this measure.
The Active Taxpayers List (ATL) reveals a marginal increase in the number of taxpayers, with 4.2 million taxpayers registered by March 1, 2024, compared to 3.8 million during the same period last year. This suggests a positive trend in tax compliance, although challenges persist in addressing tax evasion comprehensively.
An FBR official, speaking to Dawn, mentioned that individuals who file their tax returns for 2023 will have their SIM cards automatically restored, indicating a potential avenue for those affected to rectify their tax status.
The move to block SIM cards is seen as a strategic measure by the FBR to incentivize low-income individuals to file their tax returns and contribute to the country’s revenue collection efforts. While the effectiveness of this approach remains to be seen, it reflects ongoing efforts to strengthen tax compliance and broaden the tax base in Pakistan.
Sources By Agencies
