IHC bars govt from blocking non-filers' SIMs

ISLAMABAD: The Islamabad High Court (IHC) on Tuesday barred the federal government from blocking the SIMs of non-filers, ARY News reported.

IHC Chief Justice Aamir Farooq issued the order in response to a writ petition filed by the telecom operator.

The court also issued notice to the federal government in this regard, with the next hearing on the matter scheduled for May 27, 2024.

اسلام آباد ہائیکورٹ نےحکومت کو ٹیکس نان فائلرز کی موبائل فون سمز بلاک کرنے سے روک دیا#ARYNews pic.twitter.com/dMMcdmHwns

— ARY NEWS (@ARYNEWSOFFICIAL) May 14, 2024

The petition challenged Clause 114-B of the Income Tax Ordinance and the Federal Board of Revenue’s (FBR) Income Tax General Orders against non-filers.

The petitioner argued that the tax regulator’s new-found authority violated the fundamental right to freedom of business under Article 18 of the Constitution.

The petitioner warned that if implemented, this law would allow the government to deprive citizens of services in other business areas as well.

Read More: PTA opposes blocking of 500,000 non-filers’ SIMs

The development comes a day after the Federal Board of Revenue (FBR) and telecom operators had agreed to block the mobile SIM cards of non-filers, with 5,000 SIMs to be blocked daily.

FBR stated that telecom operators will receive additional lists of non-filers on a daily basis, and have already started sending messages to non-filers warning them of SIM blocking.

The FBR believes that blocking SIMs of non-filers will increase tax revenue.

Moreover, the General Order under Income Tax Ordinance 2001, Section 114B, was issued after FBR meetings with PTA, and telecom operators. The purpose of the meetings was to proceed SIM blocking of non-filers for tax year 2023.

Earlier, the Cellular Mobile Companies refused to block the SIM cards of 506,000 identified non-compliant taxpayers due to technical and operational obstacles.

READ: SIMS of over 500,000 non-filers to be blocked

“In a statement, Telecom companies stated that there are legal complexities in implementing FBR’s directives,” Sources claimed.

It is pertinent to mention here that Federal Board of Revenue (FBR) issued an income tax general order on April 30, calling the authorities to block the SIM cards of more than 506,000 identified non-compliant taxpayers across the nation