The Federal Board of Revenue (FBR) has shared two sets of 10,000 non filers data with the PTA and Cellular Mobile Operators (CMOs), but SIMs blocking has not commenced as expected.
Prime Minister Shehbaz Sharif expressed concern on Saturday upon learning of the delay in SIM blocking. Subsequently, the FBR swiftly provided another set of 5,000 non-filer records along with CNICs to PTA and CMOs, urging them to block 10,000 SIMs within hours. Despite instructions to disconnect by 6:00 pm, the SIM blocking process has not yet begun. Efforts to reach FBR Chairman Amjad Zubair Tawana for clarification have been unsuccessful.
Representatives of mobile operators remain silent on the matter, indicating that they are assessing the situation. There is no confirmation whether SIM blocking has commenced. Sources suggest that the process has not yet started. CMOs are required to send notifications to customers for SIM blocking, which has not been initiated.
Tax Expert Zeeshan Merchant predicts that blocking 506,000 SIMs could result in an annual tax revenue loss of at least Rs608 million. Considering an average monthly revenue per user of Rs280, each cellular subscriber pays around Rs100 in taxes monthly (35 percent). Thus, the estimated annual loss is Rs 608 million. Given the varying usage patterns among targeted SIM owners, the actual impact could be higher. With a total of 192 million mobile phone users in the country, FBR has identified 506,000 non-filers who may possess multiple connections.
Initially, FBR identified approximately 2 million potential non-filers for SIM blocking. However, after deliberations, the number was reduced to 506,000 under 114-B of the Income Tax General Order, with a deadline of May 15, 2024, for SIM blocking.
Earlier, FBR announced an agreement with tax authorities and CMOs to block SIMs of non-filers in batches. The first batch of 5,000 SIMs blocking was scheduled on Friday. FBR has engaged in extensive discussions with PTA and telecom operators to ensure compliance with Income Tax General Order No. 1. Telecom operators have agreed to manually block SIMs in batches until their systems are fully prepared for automation. The subsequent batches will be provided daily, and operators have started informing non-filers about the impending SIM blockage.
