The Islamabad High Court (IHC) has halted the federal government's plans to block the SIM cards of individuals who are not tax filers. This decision came in response to a petition filed by a telecom operator, with IHC Chief Justice Aamir Farooq issuing the order. The court has also issued a notice to the government, scheduling the next hearing for May 27, 2024.
The petition contested the legality of Clause 114-B of the Income Tax Ordinance and the Federal Board of Revenue's (FBR) Income Tax General Orders targeting non-filers. It argued that these measures violated citizens' fundamental right to conduct business freely under Article 18 of the Constitution, warning that such authority could extend to other business sectors if implemented.
This development follows an agreement between the FBR and telecom operators to progressively block the SIM cards of non-filers, with a daily quota of 5,000 SIMs. The FBR intends to boost tax revenue through this measure, citing it as a step towards tax compliance.
The FBR's decision was met with resistance from cellular companies, citing technical and operational challenges. They highlighted legal complexities in complying with the FBR's directives.
In summary, the IHC's ruling has temporarily halted the government's plan to block SIM cards of non-filers, pending further legal proceedings, amidst debates over its legality and practicality.
