The Pakistan Telecommunication Authority (PTA) has rejected a demand from the Federal Board of Revenue (FBR) to block the SIM cards of over 500,000 individuals who have not filed their tax returns.

In response to a request, the PTA asserted that any such order would not be legally binding and would contravene the established legal framework.

The issue arose when the FBR sought cooperation from the PTA to block the SIM cards of individuals who have failed to comply with tax filing regulations. However, the PTA has taken a firm stance against this proposal, citing legal concerns and asserting that such action would be against the legal framework governing telecommunications in the country.

Also Read: FBR’s decision to block SIMs of non-filers faces scrutiny in Karachi

According to sources familiar with the matter, the PTA emphasized that blocking SIM cards based on individuals' tax filing status would not align with existing laws and regulations. Instead, the authority suggested that the FBR explore alternative measures, such as initiating legal proceedings against non-filers, to address the issue.

The PTA had previously said that it was considering the recent decision of the FBR regarding the banning of mobile phone SIMs of non-tax filers.

According to an FBR spokesperson, they were in touch with the mobile phone operators and relevant stakeholders on the issue. They added that their aim was to take action keeping in mind the regulatory framework and relevant legal provisions.

Also Read: FBR blocks mobile SIMs of over 500,000 tax evaders

It should be noted that the FBR on Tuesday ordered to block the mobile SIMs of users who do not file income tax in Pakistan. The bureau issued an Income Tax General Order and ordered blocking of mobile SIMs against non-filers of tax returns.

This action follows the government's decision to crack down on individuals who have failed to fulfill their tax obligations. Effective immediately, the SIM cards of all individuals identified as non-filers with taxable income would have been blocked until May 15.

Also Read: PTA says considering FBR decision to block mobile SIMs for non-filers

This decision was communicated through a notification issued by the FBR, with instructions given to telecom companies to implement the measure promptly.

The list of non-filers comprises 506,671 individuals who have not been included in the Active Taxpayers List. These individuals have been targeted for their failure to file tax returns for the year 2023.