Islamabad: A telecommunications company has informed the Federal Board of Revenue (FBR) about its decision to block 3,064 SIM cards of individuals who haven’t filed tax returns, though they expressed concerns about potential legal consequences.
Read: FBR plans crackdown on non-filers with higher property taxes
The company cited difficulties in adapting its systems to meet the Income Tax General Order (ITGO) enforced by the FBR before the May 15, 2024 deadline. Challenges included automation costs, litigation risks, and financial burdens on the telecom sector. In response, a Joint Working Group (JWG) comprising tax officials and telecom operators was formed to streamline the process, with telecom operators agreeing to manually block SIM cards in smaller batches starting May 10.
Read: FBR unveils Taxation Plan to meet fiscal revenue collection targets
This development highlights collaborative efforts between the telecommunications industry and regulatory bodies to ensure compliance with tax regulations amidst practical challenges.