Telecom companies raise concerns over FBR decision to block SIMs of non-filers

The telecom industry has unanimously expressed apprehensions to the Ministry of Information Technology regarding the Federal Board of Revenue’s (FBR) recent decision to block SIM cards of non-filers, citing potential adverse effects on telecom customers.

In a letter also forwarded to the Pakistan Telecommunication Authority (PTA), the cellular mobile operators (CMOs) highlighted their obligation to maintain uninterrupted services for customers, as prescribed by the Telecom Act and relevant regulations. They underscored that, apart from specific circumstances outlined in the law, there are no grounds for CMOs to disconnect or block service for any customer.

The CMOs voiced concern over the swift implementation of the Income Tax General Order (ITGO) issued on April 29, which mandates the blocking of SIMs belonging to 506,671 individuals who failed to file their tax returns for the tax year 2023. They cautioned that this abrupt action could severely impact customers’ access to essential services, equated with the right to life by various superior court judgments.

Furthermore, the letter emphasised the importance of consumer protection, citing constitutional provisions on basic human rights and Consumer Protection Regulations mandating prior notice before service suspension. The CMOs argued that the legal flaws in the ITGO make issuing such notice impossible, raising concerns about potential litigation against telecom operators by affected individuals seeking to recover costs, damages, and losses.

Highlighting their significant contribution to the country’s revenue collection, the telecom industry called for adequate protections or indemnities through legal amendments before enforcing such orders to avert adverse consequences or customer claims. They also flagged technical challenges associated with bulk SIM blocking and the need for multiple warnings to customers, as per contractual obligations.

In addition, the telecom sector proposed a fair and equitable approach, advocating for extensive media campaigns to inform affected individuals, provision of show-cause notices, and opportunities to present their cases in tribunals or courts. They stressed the importance of due process and urged for reasonable timelines considering the internal processes and system development required for compliance.

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