Pakistan government imposes additional tax on non-filers for mobile loads, bundles

The Pakistan government has decided to impose an additional tax on non-filers, who would now have to pay more in taxes on mobile loads and bundles, ARY News reported. According to the report, the Federal Board of Revenue (FBR) devised a plan against non-filers which is likely to be implemented from May 15. The government would impose a 2.5 per cent additional tax on non-filers as well as withholding SIM cards of those who refuse to comply.

The report stated that the government is also considering levying additional tax on every load, including mobile and data load. The data of non-filers was handed over to the Pakistan Telecommunication Authority (PTA).

ARY News reported, citing sources privy to the development, that the Federal Board of Revenue (FBR) has also decided to move the Islamabad High Court (IHC) against the PTA and cellular companies after they refused to comply with the directive to block SIM cards of non-filers flouting the new tax rule.

The FBR has already started holding consultations with its legal team before filing a petition, according to the report.

Earlier negotiations between the FBR and mobile companies over the direction to block SIM cards on grounds of non-compliance failed.

On May 4, the PTA opposed the blocking of SIM cards of over 500,000 non-filers, who refused to yield to the new tax rule, the report stated, adding that in a letter to the FBR, the PTA stated that blocking these SIMs would not be in line with their system.

PTA noted that a large number of women use SIMs, which are registered in the names of their spouses, ARY News reported, adding that no restrictions, however, were being imposed on the issuance of new SIMs to non-filers.

The telecommunications authority also questioned the procedure for restoring the SIM cards of those who come under the tax net.

The authority clarified that they are not legally bound to block SIMs as doing so would impede efforts towards digitalisation and the country's telecom economy.