Islamabad High Court Issues Stay Order to Block SIMs of Tax Non-Filers

The Islamabad High Court (IHC) has issued a stay order, temporarily halting the government's plan to block mobile phone SIMs of tax non-filers until May 27th. This decision comes after a private mobile company challenged the legality of the move.

The Dispute

The Federal Board of Revenue (FBR) issued an Income Tax General Order (ITGO) on April 30th, authorizing the blocking of SIM cards belonging to individuals identified as non-filers for tax year 2023. Telecom operators reportedly began blocking SIMs in accordance with this order.

A private mobile company, represented by Advocate Salman Akram Raja, filed a petition with the IHC arguing that the ITGO violates the fundamental right to business freedom guaranteed by the Pakistani Constitution. Raja further claimed that blocking over 500,000 SIMs could result in significant financial losses for the company.

Arguments Against Blocking SIMs

The telecom industry previously expressed concerns regarding the ITGO's implementation. They argued that:

• The order lacked proper legal analysis and consideration of constitutional rights.
• No cost-benefit analysis was conducted before implementing the ITGO.
• Blocking SIMs could negatively impact customer access to essential services.
• Telecom companies, who are already tax compliant, would be unfairly burdened by the implementation.

Current Status

The IHC's stay order prevents the government from blocking SIMs until May 27th. This temporary reprieve allows for further legal proceedings and consideration of the arguments presented.

Unresolved Issue of Tax Compliance

While the court's decision offers temporary relief, the underlying issue of tax non-compliance remains. The FBR is likely to explore alternative solutions to encourage individuals to file their tax returns.

This article was published at Islamabad High Court Halts Gov Move to Block SIMs of Tax Non-Filers