ISLAMABAD – Pakistan Telecommunication Authority (PTA) has turned down proposal to block mobile SIMs for tax evaders, and it urged the Federal Board of Revenue (FBR) to consider other measures. 

The stern measure was proposed as apex tax collection authorities tightened the noose against non-filers. In its response, the national telecom authority argued that SIMs registered under women and children’s names were often used by men.

It also claimed that blocking SIMs would negatively impact digital transformation and investment.

FBR initially identified 2 million potential tax evaders, but mobile phone companies requested to phase the SIM blocking due to the large number involved. 

‘FBR to cut off utility connections’

Federal Board of Revenue earlier proposed shutting down electricity and gas connections of those who do not file income tax returns.

FBR has established 145 District Tax Offices which will focus on bringing 1.5 to 2 million new taxpayers into the tax net till June 2024.

The stringent measures were being considered to broaden tax base and ultimately raise the tax-to-GDP ratio to a desired level. These offices would be headed by District Tax Officers entrusted with the responsibility of enforcing Income Tax Returns from non-filers and stop filers.