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Telecom Operators Challenge FBR’s Decision to Block SIMs Over Tax Returns

Telecom Industry Raises Alarm Over FBR's Rushed Decision, Warns of Legal and Technical Challenges

by Muhammad Arham
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In a bold move, telecom operators have rallied against the Federal Board of Revenue’s (FBR) recent directive to block SIM cards of over half a million individuals for failing to file their tax returns for the year 2023. The operators have taken their grievances to both the FBR and the Pakistan Telecommunication Authority (PTA), citing concerns over consumer rights and procedural fairness.

In a strongly worded letter, cellular mobile operators (CMOs) expressed their obligation to provide uninterrupted services to customers unless under circumstances specified in telecom regulations. They argue that the hasty implementation of the Income Tax General Order (ITGO) would severely impact consumers’ access to essential services, equating it with a violation of the right to life as per judicial precedents.

Highlighting constitutional provisions and Consumer Protection Regulations, the operators stress that any suspension of service requires prior notice, which is lacking in the ITGO. They propose that delinquent taxpayers should be sanctioned directly without involving the telecom industry, to avoid legal repercussions and potential litigation from affected individuals seeking compensation for damages.

Moreover, the telecom industry emphasizes the need for legal amendments to protect operators from adverse consequences and customer claims before implementing such orders. They assert that compliance with the ITGO would necessitate extensive technical preparations and advance notice to customers, both of which are currently lacking.

In advocating for fair treatment and due process, telecom operators demand extensive media campaigns to inform affected individuals, providing them with show-cause notices and opportunities to present their case in a tribunal or court of law.

As this confrontation unfolds, it underscores the intricate balance between tax enforcement, consumer rights, and industry responsibilities in Pakistan’s regulatory landscape. Stay tuned for further developments on this contentious issue.

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