In a significant effort to expand its revenue base, Pakistan’s Federal Board of Revenue (FBR) has taken decisive action by blocking 210,000 SIM cards belonging to individuals who have not filed tax returns. This move, underscores the FBR’s commitment to enforcing tax compliance across the country.
Tax Filing Statistics
As of 2022, only a fraction of Pakistan’s vast population has filed income tax returns. Specifically, out of more than 240 million people, only 5.2 million individuals have complied with tax filing requirements.
FBR’s Directive and Actions
The FBR issued a directive in April aimed at compelling tax compliance. Subsequently, it instructed the telecommunications authority to block the SIM cards of 210,000 individuals who were identified as non-compliant. According to data from the board, approximately 62,000 of these SIM cards were later restored, following the resolution of tax obligations by their respective owners.
FBR’s Statement
Bakhtiar Muhammad, a public relations official from the FBR, emphasized the necessity of such measures, stating, “Nobody voluntarily comes up and pays taxes. We have to make ways for the people to pay their taxes.” This underscores the FBR’s proactive approach to increasing tax compliance and revenue collection in Pakistan.
Telecom Landscape
Pakistan boasts a significant telecommunications sector, with more than 192 million cellphone subscribers spread across four major service providers, as per the telecommunications authority’s data.
This initiative by the FBR reflects a broader strategy to enhance tax administration and fiscal discipline in Pakistan, aiming to ensure equitable contribution to the nation’s revenue resources.
