With disagreements between the Federal Board of Revenue (FBR), PTA, and mobile companies over blocking SIMs of non-filers, the federal government is exploring other options to collect taxes.
Reports suggest that the government plans to introduce an extra tax on individuals who don’t file their taxes, particularly focusing on mobile loads and bundles.
This decision is pending approval from the cabinet and is expected to take effect from May 15 after thorough discussions. Government sources revealed that a 2.5 percent additional tax will be levied along with withholding tax for non-filers.
Last week, the FBR shared data of non-filers with the Pakistan Telecommunication Authority (PTA). The FBR intends to challenge PTA and cellular companies in the Islamabad High Court for not blocking SIM cards of non-filers, despite unsuccessful negotiations.
Telecom operators oppose blocking over half a million SIM cards of non-filers. They argue that some SIMs are used by women registered under their husbands’ names and that blocking SIMs could harm digitalization and the telecom economy.
Opinion:
It’s a complex situation. While it’s important to encourage tax compliance, the method of blocking SIMs might not be the most effective or fair approach, considering the potential impact on digitalization and telecom services. Introducing additional taxes for non-filers could be a more balanced solution, but it’s crucial to ensure it doesn’t disproportionately burden certain groups, especially those who may face challenges in tax filing.
