PTA rejects FBR's demand to block over 0.5 million SIMs of non-filers

PTA rejects FBR’s demand to block over 0.5 million SIMs of non-filers

PTA says such an order would not have legal bindings and is contrary to the legal framework

SIMs’ blockage to create difficulties for women, and school children: PTA.
PTA says “adverse impact likely on foreign investment in telecom sector”.
PTA asks FBR to find alternative modes for income tax compliance.

پی ٹی اے نے ایف بی آر کا نان فائلرز کی 0.5 ملین سے زائد سمیں بلاک کرنے کا مطالبہ مسترد کر دیا۔

پی ٹی اے کا کہنا ہے کہ اس طرح کے حکم کی قانونی پابندی نہیں ہوگی اور یہ قانونی فریم ورک کے خلاف ہے۔ سمز کی بندش خواتین اور سکول کے بچوں کے لیے مشکلات پیدا کر رہی ہے: پی ٹی اے۔ پی ٹی اے کا کہنا ہے کہ “ٹیلی کام کے شعبے میں غیر ملکی سرمایہ کاری پر منفی اثرات کا امکان ہے۔” پی ٹی اے نے ایف بی آر سے انکم ٹیکس کی تعمیل کے لیے متبادل طریقے تلاش کرنے کو کہا .

ISLAMABAD:

The Pakistan Telecommunication Authority (PTA) has rejected the Federal Board of Revenue’s (FBR) demand to block the SIMs of approximately 0.6 million non-filers, arguing that such an order would not have legal bindings and is contrary to the legal framework.

Presently this dismissal could set off additional debate between the FBR and PTA as the two sides are refering to various arrangements of regulation and legitimate structure. According to The News, the FBR might think about prosecuting those who would rather violate the Income Tax General Order (ITGO) under Section 114B. On the other hand, the Pakistan Telecommunication Authority (the “Authority”) has sent an official communication to the FBR stating that the execution of the Income Tax General Order issued under Section 114-B of the Income Tax Ordinance, 2001 does not fall within the jurisdiction of the Pakistan Telecommunication Authority (the “Authority”). According to the applicable legal regulatory regime, the execution of the Income Tax General Order issued under Section 114-B of the Income Tax Ordinance, 2001 does not fall within the jurisdiction of the Pakistan Telecommunication Authority (the “Authority”).

Accordingly, ITGO dated April 29th, 2024 referred to the Authority for compliance/execution would have no legally binding effect being inconsistent with the applicable legal framework.

ITGO order

In addition, it has also been observed that before the execution of the ITGO order, factual issues with regard to usage of SIMs against Computerised National Identity Cards (CNICs) also need to be verified on the premise that any person may obtain eight SIMs (3 Data and 5 Voice) therefore, before issuing and implementing ITGO, procedural steps about notices would require to be issued by the tax collection authority as provided in section 1I4-B of the Income Tax Ordinance, 2001.

Nevertheless, the impact of the execution of ITGO will also have an adverse impact on prevailing social norms, inter-alia, on the following:

In Pakistan

In Pakistan, male individuals from the general public like to enroll SIMs against their CNIC/names rather than female(s)and adolescent individuals from the family. As of now, according to accessible data, just 27% of SIMs have been enrolled against CNIC of females.

Subsequently, potential subscribers i.e., children and female members of family using SIMs may be deprived of communication with specific reference to their educational activities.

It may also hurt the confidence of foreign investment in the telecom sector including the objectivity of digital transformation.

Multiple issues with banking transactions, e-commerce/online business activities, remittance directly into mobile money accounts, financial support for family members, and e-health activities carried out through mobile connectivity will emerge as a result of blocking SIMs.

Considering the above mentioned and as to keep away from any hostile ramifications, it is likewise recommended that as opposed to summoning the correctional activity as far as hindering SIMs at the first example, other elective modes for guaranteeing better consistency for a recording of personal expense forms might be figured out via doing a mindfulness crusade, sending SMS, and so on.

Accordingly, the instant matter needs to be reviewed holistically after consultation with the relevant stakeholders including the Ministry of Information Technology and Telecom. It was also told that this official letter was issued with the approval of competent authority, the PTA letter concluded.