FBR Blocks 210,000 SIM Cards to Enforce Tax Compliance

The Federal Board of Revenue (FBR) has announced the blocking of 210,000 SIM cards belonging to users who have not filed their tax returns, to broaden the revenue base.

Despite a population exceeding 240 million, only 5.2 million individuals filed income tax returns in 2022.

This directive, issued in April, led the telecommunications authority to block the connections of 210,000 SIM cards, with 62,000 later being restored following tax payments. “We have unblocked the SIMs of those who have paid their taxes,” stated Bakhtiar Muhammad, an FBR public relations official. “Nobody voluntarily comes up and pays taxes. We have to make ways for the people to pay their taxes.”

Pakistan, with over 192 million cellphone subscribers and four telecom service providers, requires SIM cards to be registered with a national identity number, often linked to multiple connections.

An official from one of the telecom companies, speaking anonymously to AFP, said, “Access to telecom services is a basic human right and essential for many other fundamental services, including access to information, education, and emergency services. We are in dialogue with the authorities, convincing them to use technology to help increase tax collection, as abrupt measures could disrupt the provision of these critical services.”

Pakistan’s efforts to enhance its low revenue base are challenged by a largely undocumented economy. The government, seeking more loans from the International Monetary Fund (IMF), faces pressure to mobilize its own resources.

Fareiha Aziz, a digital rights activist, criticized the move: “This is an absurd move. Not everyone who has SIMs earns enough to fall under the tax-paying category. People’s livelihoods are tied to their phones; this is an overreach.”