Key IHC Ruling Telecom Operator Challenges FBR’s SIM Blocking Directive
IHC Chief Justice Aamir Farooq issued the order in response to a writ petition filed by the telecom operator.
The court also issued notice to the federal government in this regard, with the next hearing on the matter scheduled for May 27, 2024.
The petition challenged Clause 114-B of the Income Tax Ordinance and the Federal Board of Revenue’s (FBR) Income Tax General Orders against non-filers.
The petitioner argued that the tax regulator’s new-found authority violated the fundamental right to freedom of business under Article 18 of the Constitution.
The petitioner warned that if implemented, this law would allow the government to deprive citizens of services in other business areas as well.
The development comes a day after the Federal Board of Revenue (FBR) and telecom operators had agreed to block the mobile SIM cards of non-filers, with 5,000 SIMs to be blocked daily.
FBR stated that telecom operators will receive additional lists of non-filers daily, and have already started sending messages to non-filers warning them of SIM blocking.
The FBR believes that blocking SIMs of non-filers will increase tax revenue.
Moreover, the General Order under Income Tax Ordinance 2001, Section 114B, was issued after FBR meetings with PTA, and telecom operators. The purpose of the meetings was to proceed with SIM blocking of non-filers for the tax year 2023.
Earlier, the Cellular Mobile Companies refused to block the SIM cards of 506,000 identified non-compliant taxpayers due to technical and operational obstacles.
“In a statement, Telecom companies stated that there are legal complexities in implementing FBR’s directives,” Sources claimed.
It is pertinent to mention here that the Federal Board of Revenue (FBR) issued an income tax general order on April 30, calling the authorities to block the SIM cards of more than 506,000 identified non-compliant taxpayers across the nation.
