Islamabad: In a bid to enhance tax compliance, PM Shehbaz Sharif-led govt has directed the Pakistan Telecommunication Authority (PTA) and other telecom companies to block the mobile phone SIMs of over 500,000 people who have not submitted their tax returns.
The development came a day after Shehbaz pledged at the closing plenary session of the World Economic Forum special conference in Riyadh to enact significant austerity measures and implement long-lasting reforms in order to steer his country out of its current economic crisis.
Last week, the Federal Board of Revenue (FBR) had directed the PTA and all telecom operators to ensure compliance with the Income Tax General Order (ITGO) with immediate effect.
“The FBR has taken decisive action by issuing an order to disable mobile phone SIMs associated with 506,671 individuals ... who are not appearing on the active taxpayer list but are obligated to file income tax returns,” the FBR said in a statement, adding that telecom operators are mandated to furnish a compliance report to the FBR by May 15 to provide transparency and accountability in the enforcement process.
“Until the FBR or the Commissioner of Inland Revenue, whichever has jurisdiction over the individual, restores the SIMs for the aforementioned individuals, they will remain blocked,” it added. For 2023, so far only 4.5 million people have filed their annual returns as against 5.9 million in 2022. The govt had also launched a compulsory tax registration scheme to bring in about 3.2 million retailers who remain outside the tax net.
