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The Federal Board of Revenue (FBR) has introduced a comprehensive mechanism for blocking and unblocking mobile phone SIMs of non-tax filers, with specific guidelines and timelines for both telecom operators and tax officials.
The objective of this action is to expedite the process of reestablishing SIM services for taxpayers who have submitted their income tax returns, in accordance with the directives of the Federal Tax Ombudsman (FTO).
Automated SIM Restoration Process
Telecom companies are required to reactivate their SIMs within 1 to 2 business days after receiving an automated list of tax filers from the FBR, as per the FBR’s standard operating procedure (SOP).
It is recommended that taxpayers who are experiencing delays in service restoration or encounter unresolved issues contact their respective Commissioner. These cases will be assessed by the Commissioner, who will then take the requisite actions to resolve them, including contacting the issuing authority if necessary.
Step-by-Step Implementation
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Identification and Verification of Non-ATL persons:
A list of non-filers for a specific tax year will be derived from the FBR database using PRAL and forwarded to the field formations for additional review.
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Verification from the Field Formations:
Upon communication to the field formations, verification will be conducted to determine the eligibility of cases for inclusion in the Income Tax General Order. Chief Commissioners will be requested to confirm that all legal and codal formalities have been satisfactorily executed.
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Issuance of Certificate by concerned Chief Commissioners:
A certificate will be issued by all Chief Commissioners, along with the list of cases to be included in the Income Tax General Order. This certificate will verify and validate the eligibility of all the included cases.
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Issuance of ITGO by FBR:
The Board will issue an Income Tax General Order that will have one or all of the consequences outlined in Section 114B(2). The relevant service providers will be provided with explicit instructions to ensure that the order is immediately implemented.
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Communication to concerned Service Providers:
The Income Tax General Order (ITGO) will be duly communicated to the relevant service providers, such as telecommunication operators and utility companies. The service providers will be instructed to immediately implement the ITGO, and they will be required to submit a compliance report within a specified timeframe.
Non-Compliance Measures
Service providers who violate the ITGO will be subject to legal repercussions under the Income Tax Ordinance, 2001, which include penalty provisions under Section 182 and the possibility of prosecution under Section 196.
The ITGO will be enforced by a specialized FBR team, which will also monitor compliance and assess the initiative’s efficacy. To guarantee accountability, senior authorities will receive consistent updates.
This initiative guarantees a seamless process for taxpayers who had their SIM services blocked by the PTA and enhances the FBR’s mission, which is enshrined in the country’s Tax Administration for Policy reform.
