FBR Directs PTA to Block Over 500,000 SIM Cards in Tax Compliance Push
On April 30, the Federal Board of Revenue (FBR) directed the Pakistan Telecommunications Authority (PTA) and telecom companies to block the SIM cards of over half a million individuals who were not listed as active taxpayers but are obligated to file their Income Tax Returns for the Tax Year 2023 under the regulations of the Income Tax Ordinance, 2001.
One person may have more than one SIM card, and all of those connections will be cut off with immediate effect, as highlighted by a senior FBR official. He estimated that approximately 1 million to 1.5 million SIM cards would be blocked due to the FBR order.
Additionally, the FBR disclosed its intention to target retailers operating outside the tax ambit. The initiative stems from the FBR’s efforts to address a shortfall in tax collection. Despite collecting Rs7.38 trillion during the first ten months of the fiscal year, the FBR fell short of its target by approximately Rs40 billion. Notably, the FBR observed a decline in tax returns filed, from 5.9 million in 2022 to 4.2 million in 2023.
In a significant development, on April 27, Prime Minister Shehbaz Sharif removed 25 high-ranking FBR officers, Grades 21 and 22, due to adverse reports from premier intelligence agencies. Furthermore, the FBR is actively working to integrate retailers into the tax framework. The government has launched the Tajir Dost Scheme to facilitate and incentivize retailers to register for taxation.
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