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Pakistan to block mobile sim cards of over half a million tax defaulters – The Times of India

Pakistan has frozen the SIM cards of 506,671 people for failing to file their 2023 tax returns and aims to target these people to increase the number of filers.
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New Delhi: Pakistani authorities have decided to freeze the SIM cards of more than 500,000 people who failed to file their 2023 tax returns. The Federal Board of Revenue (FBR), in an Income Tax General Order (ITGO), has stated that 6,671 individuals who did not file their 2023 tax returns will have no authority over the FBR or their 5 mobile SIMs. Frozen unless reinstated by the Commissioner of Internal Revenue.

Income Tax General Order (ITGO) No. 01 of 2024 bans the use of SIM cards and requires Pakistan Telecommunications Authority (PTA) and all telecom operators to submit compliance reports by May 15 Dawn reported.

The FBR has identified 2.4 million potential taxpayers who were not on the tax rolls so far. Official sources said notices were finally served on these people.

The FBR selected about 500,000 people out of 2.4 million people to be SIM blocked based on certain criteria. They had declared taxable income in any of the previous three years and had not filed a report for the 2023 tax year.

The ban on SIM cards is another simple measure taken by the FBR to encourage low-income earners to file tax returns and increase the number of filers, and it looks like a decent idea on paper.

(Information provided by agency)
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