The Islamabad High Court has issued a temporary injunction against the government’s plans to block mobile phone SIMs belonging to non-filers until May 27. This decision came during a hearing of a petition filed by a private telecom operator, with Chief Justice Aamer Farooq directing notices to the Federal Board of Revenue (FBR), Pakistan Telecommunication Authority (PTA), and other relevant parties.
Telecom operators had reportedly agreed, following discussions with the FBR, to gradually block SIMs of non-filers in batches of 5,000 until their systems could fully automate the process. However, the FBR’s issuance of the Income Tax General Order (ITGO) on April 30 to disable SIMs of over 500,000 non-filers drew legal challenge.
Representing the petitioner, Advocate Salman Akram Raja argued that the ITGO amendment encroached upon the constitutional right to business freedom, potentially resulting in significant financial losses for telecom companies. The court, after considering these arguments, suspended the SIM blocking process until May 27.
Earlier notifications had warned thousands of individuals about potential SIM blocking for non-compliance with tax return filings. Telecom companies expressed concern over the lack of legal analysis and potential adverse effects on customers’ access to essential services. They argued that penalizing non-compliant individuals should not implicate telecom operators who are tax-compliant.
This move underscores the legal and economic complexities surrounding the enforcement of tax regulations in the telecom sector, highlighting the need for balanced approaches that consider both regulatory compliance and business sustainability.
