The Islamabad High Court (IHC) has intervened in the ongoing dispute regarding the government’s initiative to block mobile phone SIMs of tax non-filers, issuing a stay order until May 27. Led by Chief Justice Aamer Farooq, the court addressed a petition filed by a private mobile company challenging the government’s move.
Last week, telecom operators, following discussions with the Federal Board of Revenue (FBR), had reportedly agreed to manually block SIMs of non-filers in small batches until their systems could fully automate the process. However, the FBR’s issuance of the Income Tax General Order (ITGO) on April 30 aimed at disabling the SIMs of over 500,000 individuals who hadn’t filed their tax returns for 2023 drew legal scrutiny.
Advocate Salman Akram Raja, representing the mobile company, argued in court that the amendment in the law violated the fundamental right to business freedom as outlined in Article 18 of the Constitution. He contended that blocking over 500,000 SIMs could result in an annual loss of Rs1 billion for the companies.
On May 12, telecom operators reportedly blocked SIMs of over 3,500 non-filers, in compliance with the ITGO. However, concerns have been raised regarding the legality and practicality of the measure. The telecom industry, in a letter to the Ministry of IT & Telecom and the Pakistan Telecommunication Authority (PTA), emphasised their obligation to provide uninterrupted services to customers and expressed concerns about the rushed implementation of the ITGO.
The industry argued that such actions could adversely affect customers’ access to essential services and undermine the operational capacity of compliant telecom operators. They suggested that delinquent individuals should be directly sanctioned without implicating the entire industry.
The court’s decision to issue a stay order reflects the need for further legal scrutiny and consideration of the implications of the government’s initiative on both businesses and consumers.