Pakistan To Block SIM Cards of Over 5 Lakh Tax Defaulters

Islamabad: In a move aimed at countering tax evasion, Pakistani authorities have announced plans to block the mobile phone SIM cards of more than half a million individuals who have defaulted on their taxes.

The Federal Board of Revenue (FBR), through an Income Tax General Order (ITGO), has directed the blocking of SIMs for 5,06,671 individuals who failed to file their tax returns for 2023. This measure will remain in place until the FBR or the relevant Commissioner Inland Revenue authorizes restoration.

The FBR identified 2.4 million potential taxpayers absent from tax rolls, issuing notices accordingly. From this group, over 0.5 million individuals were selected for SIM blockade based on criteria such as past declaration of taxable income but non-filing for tax year 2023.

As of March 1, 2024, the FBR received 4.2 million taxpayers, a slight increase from the previous year’s 3.8 million. Notably, in 2022, a total of 5.9 million income tax returns were filed.

SIM restoration will be automatic upon filing tax returns for 2023. Weekly updates to the Active Taxpayers List (ATL) will facilitate this process, with names submitted every Tuesday for restoration.