ISLAMABAD: The Federal Board of Revenue (FBR) has announced that 506,671 individuals who did not file their tax returns for the year 2023 will face the blocking of their mobile phone SIMs. This action follows the issuance of Income Tax General Order (ITGO) no. 01 of 2024, which mandates the suspension of SIM services for these non-compliant taxpayers until they are reinstated by the FBR or the relevant Commissioner Inland Revenue.
The directive from the FBR requires immediate compliance from the Pakistan Telecommunication Authority (PTA) and all telecom operators. These entities are to report their compliance to the FBR by May 15.
The agency has identified 2.4 million potential taxpayers absent from the tax rolls. These individuals were subsequently issued notices for non-compliance. Of these, over half a million have been selected for the SIM blockade as they have previously declared taxable income in one of the last three years but failed to file their returns for 2023.
Restoration of SIM services will automatically occur for those who submit their 2023 tax returns. The FBR updates its ATL every Monday and submits the names of compliant taxpayers to the PTA and telecom companies for SIM restoration every Tuesday. This restoration process is fully automated, with no separate steps required for the taxpayers once they file their returns.
The FBR’s decision to block SIMs for over 500,000 individuals who didn’t file tax returns in 2023 is a significant move to enforce tax compliance. This measure underscores the government’s commitment to broadening the tax base and ensuring accountability. The automated process for SIM restoration upon filing tax returns streamlines compliance efforts and encourages timely action from taxpayers.