Telecoms Block 3500 SIMs of Tax Non-filers in Pakistan

Telecoms Block 3500 SIMs of Tax Non-filers in Pakistan

VoM News Desk | May 12, 2024 | 02:48 PM IST | Pakistan News, World | Follow on Google News

Telecoms Block 3500 SIMs of Tax Non-filers in Pakistan

Telecoms Block 3500 SIMs of Tax Non-filers in Pakistan

Key Highlights:

1. Pakistan’s telecom operators block over 3,500 mobile phone SIMs of non-filers, aiming to enforce tax compliance.
2. Federal Board of Revenue (FBR) sends warnings to 5,000 individuals, threatening SIM blocking if returns aren’t filed.
3. FBR plans to impose a 90% withholding tax on non-filers, deducting automatically from prepaid and postpaid balances.

Pakistan’s telecom operators have taken a stringent step in enforcing tax compliance, blocking over 3,500 mobile phone SIMs belonging to non-filers. This move, part of the Income Tax General Order (ITGO), is aimed at compelling individuals to record their returns for the year 2023. The Federal Board of Revenue (FBR) sent warnings to 5,000 individuals, indicating that SIMs would be blocked if returns were not filed promptly.

In a bid to further incentivize compliance, the FBR plans to impose a 90% withholding tax on non-filers, significantly higher than the previous rate of 2.5%. This tax will be automatically deducted from mobile phone balances loaded by both prepaid and postpaid users. Failure to comply not only results in SIM blocking but also incurs additional taxes each time a non-filer recharges their balance or utilizes mobile services.

As the deadline for SIM blocking approaches, the FBR is prepared to take legal action against telecom companies failing to comply with the directive. Discussions with legal experts are underway, indicating a firm stance on enforcing tax regulations. With these measures, Pakistan aims to enhance tax collection and ensure widespread compliance among taxpayers.

Source: Dawn News

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