GHULAM ABBAS
ISLAMABAD: As telecom companies were concerned about the initiative of FederalBoardofRevenue (FBR), the Pakistan Telecommunication Authority (PTA) has finally refused the request from FBR to deactivate approximately 500,000 SIM cards nationwide.
The FBR had urged the PTA on April 29 to block the SIMs of 506,671 individuals who had not filed their tax returns for the fiscal year 2023. However, after closed-door discussions involving stakeholders, including major telecom operators like Jazz, Ufone, Zong4G, and Telenor, the PTA made its stance clear on Saturday.
In a statement released, the PTA conveyed that the matter required thorough review. It highlighted concerns regarding Section 114-B of the Income Tax Ordinance 2001, which empowers the FBR to issue Income Tax General Orders (ITGO) for blocking SIMs of non-filers.
The PTA emphasized the need for a comprehensive assessment before implementation, citing potential adverse effects on societal norms and everyday life. They noted that many SIMs are registered under male family members’ CNICs, impacting females and juveniles who rely on these connections for communication, education, and other essential activities.
Moreover, the telecom operators voiced apprehensions regarding the broader implications of SIM deactivation. They underscored the pivotal role of mobile connectivity beyond mere communication, encompassing banking, e-commerce, remittance, and e-health services.
Additionally, the PTA cautioned against the potential negative impact on foreign investment and the government’s digital transformation goals. They emphasized the importance of factual verification before executing the ITGO order and proposed alternative measures, such as awareness campaigns and SMS notifications to non-filers.
In conclusion, the telecom operators warned against the likelihood of litigation resulting from the decision to block SIMs. They urged the FBR to explore alternative compliance methods to achieve tax filing targets while mitigating adverse consequences on citizens and the telecom sector.
The standoff between the PTA and FBR underscores the complex interplay between regulatory enforcement, tax compliance, and technological infrastructure in Pakistan’s evolving digital landscape. As stakeholders navigate these challenges, finding a balanced approach becomes imperative to ensure both fiscal responsibility and citizen welfare.
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