Pakistan Blocks 210,000 SIM Cards to Encourage Tax Payment

Summary: Pakistan Blocks 210,000 SIM Cards to Encourage Tax Payment

The Pakistani government has blocked over 210,000 mobile SIM cards in an effort to compel citizens to comply with tax regulations. This action, coordinated by the Federal Board of Revenue (FBR) and the Pakistan Telecommunication Authority (PTA), targets individuals who have not filed their income tax returns for the year 2023, despite having declared taxable income in the past three years.

The initiative aims to increase the number of tax return filers and expand the tax base. The blocked SIM cards will be automatically reactivated once the individuals file their tax returns. The restoration process will be updated on a weekly basis, ensuring that compliant taxpayers can regain access to their mobile services promptly.

This measure is part of a broader strategy to enhance tax compliance, which includes higher withholding tax rates for non-filers and efforts to integrate more potential taxpayers into the formal tax system.

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