‘Can’t Mass Block SIM Cards’: Pakistan Telcos Throw Cold Water On Taxman’s Plans To Punish Defaulters

The telecom companies that operate in Pakistan told the nation’s ministry of information technology that the decision taken by the Federal Board of Revenue (FBR) to block SIM cards of tax defaulters was made hastily and will end up adversely affecting customers, the Dawn said in a report.

The Federal Board of Revenue (FBR) in an Income Tax General Order (ITGO) said the mobile SIMs of 506,671 individuals, who failed to file their tax returns for 2023, will stay blocked until restored by the FBR or the Commissioner Inland Revenue having authority over the person.

The operators in their letter said that they are obligated to provide uninterrupted services to their customers except in the circumstances mentioned in the Pakistan Telecom Act and other applicable regulations. It said that there are no instances where the mobile operators can disconnect or block the service of any customer.

“The ITGO being forced through with undue haste will adversely impact the customers. This will gravely impact the customers’ ability to get essential services, which have now been defined as the right to life, according to different judgements of superior courts,” the letter, accessed by the Pakistani newspaper, said.

“Besides the aspect of consumer protection was important with relevant constitutional provisions of basic human rights, Consumer Protection Regulations mandated operators that any suspension of service is subject to prior notice of such intentions, and in the instant case the issuance of notice is not possible because of the legal defects of ITGO,” it further added.

The operators suggested that those who do not file their taxes be penalised directly without involving and adversely impacting the nation’s telecom sector.

They also warned that if they were to comply with the ITGO, the affected customers could end up filing lawsuits against the operators.

“The affected individual may even seek to recover special costs, damages & losses that he/she has incurred because of SIM card being blocked,” the letter said.