In a recent development, the Islamabad High Court (IHC) has called upon the government to provide a response by May 22 regarding its petition to block mobile phone SIMs of non-filers. Chief Justice Aamer Farooq presided over the hearing, urging for a resolution regarding the government’s decision to block SIM cards.
During the proceedings, Attorney General for Pakistan Mansoor Awan affirmed that laborers would be encompassed in the measure, assuring that they would not receive notices. Responding to queries, Justice Farooq clarified that the court hasn’t prohibited the government from blocking SIMs but restrained it from penalizing private companies.
The decision of the federal government to block SIMs of non-filers has garnered international attention, drawing concerns from the Global System for Mobile Communications Association. The Federal Board of Revenue (FBR) had earlier mandated telecom operators to block SIMs of non-filers by May 15, 2024, affecting over 500,000 SIM cards.
In an effort to enhance tax compliance, Finance Minister Aurangzeb has pledged to broaden the tax base. Under Aurangzeb’s directives, the FBR is intensifying its crackdown on fraudulent sales tax and fake invoices. Additionally, the FBR has opted for a strategy of imposing an additional withholding tax of 90% on tax evaders until they submit their income tax returns.
Telecommunication operators have agreed to manually block SIM cards in smaller batches, facilitating the implementation of the government’s directive. This move aims to encourage tax compliance and deter evasion, with a significant financial penalty for those failing to comply.
As the legal and fiscal landscapes continue to evolve, the IHC’s scrutiny and the government’s measures reflect ongoing efforts to streamline taxation policies and enhance revenue collection mechanisms.
