Telcos raise concerns over SIM blocking without legal analysis

Operators express reservations under tax compliance measures, citing legal gaps and potential risks to customer access and operator rights

The telecom industry, represented by cellular mobile operators (CMOs), has raised significant concerns regarding the potential SIM blocking of non-compliant individuals under the Income Tax General Order (ITGO). In a letter addressed to the Ministry of IT & Telecom and the Pakistan Telecommunication Authority (PTA), industry stakeholders emphasized the necessity for a thorough legal analysis and procedural clarity before implementing such measures.

The letter underscores that while CMOs are mandated to provide uninterrupted services to their customers, there are no explicit provisions for disconnecting or blocking services in the Telecom Act and relevant regulations. This absence of legal grounds for SIM blocking raises questions about customer rights and the operational capacity of telecom operators.

One of the key points highlighted in the letter is the lack of a comprehensive legal analysis, guaranteed constitutional rights consideration, or a cost-benefit review by the Federal Board of Revenue (FBR) before passing and enforcing the ITGO. Rushing through such measures without due process could adversely impact customers’ ability to access essential services, recognized as a fundamental right to life by superior court judgments. Furthermore, it undermines the rights and operational capabilities of compliant telecom operators.

The industry contends that any individuals found non-compliant should be directly sanctioned without implicating and adversely affecting the entire telecom industry. Additionally, the potential risks of legal disputes against CMOs, customer actions, or claims resulting from hasty SIM blocking without due process need to be addressed through legal safeguards or indemnities.

Moreover, technical challenges and procedural complexities related to bulk SIM blocking and restoration require thorough deliberation and agreement between regulatory authorities and industry stakeholders. The industry suggests a transparent and equitable process that ensures fair treatment, due process, and legal recourse for affected individuals, ultimately fostering tax compliance without compromising customer rights or operator responsibilities.

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