Friday, May 24, 2024

Government Mulls Additional Taxes on Mobile Recharge and Internet for Non-Filers

As tensions persist between the Federal Board of Revenue (FBR), Pakistan Telecommunication Authority (PTA), and mobile companies regarding the blocking of SIMs belonging to non-filers, the federal government explores alternative measures to enhance tax recovery.

Reports suggest that the government is contemplating the introduction of an additional tax targeting individuals who fail to file their taxes, particularly focusing on mobile loads and bundles.

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Read: PTA Rejects FBR's Request to Block SIM Cards of Non-Tax Filers

The proposed decision, pending approval from the cabinet, aims to implement the new tax regime from May 15 following extensive negotiations. Government sources indicate a plan to impose a 2.5 percent additional tax alongside withholding tax for non-filers.

Recent developments saw the FBR sharing data of non-filers with the PTA, prompting the tax authority to consider legal action against the PTA and cellular companies for their alleged failure to block SIM cards of non-filers, despite previous unsuccessful negotiations.

Read: Non-Filer? Here’s How to Check if You Are on FBR’s SIM Block List

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Telecom operators have opposed the blocking of over half a million SIM cards belonging to non-filers, citing concerns such as SIMs registered under spouses' names and potential adverse effects on digitalization and the telecom industry.

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