ISLAMABAD: In bid to bolster tax revenues and broaden nation’s tax base, Federal Board of Revenue (FBR) has taken bold new decision targeting non-filers.

Under initiative, FBR plans to implement substantial increase in Withholding Tax, hiking it from 2.5 percent to staggering 90 percent for non-compliant individuals.

For instance, according to sources familiar with matter, if non-filer tops up their mobile phone with Rs 100, Rs 90 will be deducted and transferred to tax authority.

Furthermore, they added, persistent non-compliance will incur additional penalties, with 90 percent tax levied on each new SIM card purchase by non-filers. This tax will also apply to subsequent recharges and usage of calling and mobile data plans.

FBR released lists identifying over 500,000 non-filers, directing Pakistan Telecommunication Authority and telecom companies to block their SIM cards. As of now, approximately 11,500 SIM cards have been blocked, with further restrictions expected in coming days.

Despite FBR issuing Income Tax General Order, telecom companies resisted move by penning letter to IT Ministry and PTA in which they wrote that they were mandated to provide uninterrupted services to their customers, except in circumstances specified in Telecom Act and relevant regulations.

Published in The Daily National Courier, May, 14 2024

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