IHC halts government’s move to block SIMs of non-filers
On May 14, Islamabad High Court (IHC) temporarily halted the government’s plan to block SIM cards of individuals who have not filed their income tax returns, citing potential conflicts with constitutional rights. IHC Chief Justice Aamer Farooq issued a stay order until May 27 while seeking a response from the Federal Board of Revenue (FBR) on the matter.
The stay order came after the initial hearing of a petition filed by Zong, one of the telecom operators in the country. During the hearing, Barrister Salman Akram Raja, representing the petitioner, argued that the amendment empowering the government to block SIMs contradicted Article 18 of the Constitution, which guarantees freedom of business. He further contended that such a move would result in a significant revenue loss of Rs1 billion annually for mobile phone companies.
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.
After initially denying it, the FBR and telecom operators agreed to implement the block to boost revenue collection amid economic challenges.
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