Islamabad: The federal government is searching for a different way to collect taxes amid a standoff between the PTA, the Federal Board of Revenue FBR, and mobile operators about the barring of non-filers SIM cards.
According to reports, the federal government would impose additional taxes specifically, mobile loads and bundles on those who fail to file their taxes.
Related News: Telecom Industry Pushes Back Against Blocking SIMs
After long discussions, the new decision is anticipated to go into effect on May 15 but has not yet received cabinet approval. Along with withholding tax, non-filers will also be subject to an additional 2.5 percent charge, according to government insiders.
The Federal Board of Revenue FBR provided the Pakistan Telecommunication Authority (PTA) with data of non-filers last week. The supreme tax collection body intends to sue PTA and cellular companies in the Islamabad High Court for failing to block non-filers SIM cards, even after previous attempts at negotiation failed.
Telcom operators resisted the barring of over 500,000 non-filers SIM cards, claiming things like women using SIMs registered in their husbands’ names and possible harm to the telecom industry and digitization.