THE Federal Revenue Council (FBR) introduced a comprehensive mechanism for blocking and unblocking mobile phones SIM cards non-filers, with specific guidelines and deadlines for telecommunications operators and tax officials.

The objective of this action is to accelerate the process of restoring SIM services for taxpayers who have submitted their tax return, in accordance with the directives of the Federal Tax Ombudsman (FTO).

Automated SIM card restoration process

Telecom companies are required to reactivate their SIM cards within 1-2 working days after receiving an automated list of tax filers from the FBR, as per the standard operating procedure (SOP) of the FBR.

Ratepayers who experience delays in restoring service or who have unresolved issues are recommended to contact their respective commissioner. These cases will be assessed by the Commissioner, who will then take the necessary steps to resolve them, including contacting the issuing authority if necessary.

Step by step implementation

• 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 further scrutiny.

• Verification of field training:

Upon communication to field training, a verification will be carried out to determine the eligibility of the files for registration in the General Income Tax Ordinance. The Chief Commissioners will be asked to confirm that all legal and code formalities have been carried out satisfactorily.

• Issuance of the certificate by the chief commissioners concerned:

A certificate will be issued by all the Chief Commissioners along with the list of cases to be included in the General Income Tax Order. This certificate will verify and validate the eligibility of all included cases.

The Commission will issue a general income tax order which will have any or all of the consequences described in section 114B(2). Relevant service providers will receive explicit instructions to ensure that the order is immediately executed.

• Communication to relevant service providers:

The Income Tax General Order (ITGO) will be duly communicated to relevant service providers, such as telecom operators and utility companies. Service providers will be responsible for immediately implementing the ITGO and will be required to submit a compliance report within a specified time frame.

Non-compliance measures

Service providers who contravene 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 implemented by a specialized FBR team, which will also monitor compliance and evaluate the effectiveness of the initiative. To ensure accountability, senior authorities will receive consistent updates.

This initiative ensures a transparent process for taxpayers whose SIM services have been blocked by the PTA and strengthens the mission of the FBR, which is enshrined in the country’s tax administration for policy reform.