IHC has prohibited the government from blocking SIMs for non-filers, in response to a telecom operator’s petition challenging Clause 114-B of the Income Tax Ordinance. The court issued a notice to the federal government, with the next hearing scheduled for May 27, 2024. Blocking SIMs was proposed to increase tax revenue but faced operational obstacles.
ISLAMABAD: The Islamabad High Court (IHC) on Tuesday barred the federal government from blocking the SIMs of non-filers, ARY News reported.
IHC Chief Justice Aamir Farooq issued the order in response to a writ petition filed by the telecom operator.
The court also issued notice to the federal government in this regard, with the next hearing on the matter scheduled for May 27, 2024.
The petition challenged Clause 114-B of the Income Tax Ordinance and the Federal Board of Revenue’s (FBR) Income Tax General Orders against non-filers.
The petitioner argued that the tax regulator’s new-found authority violated the fundamental right to freedom of business under Article 18 of the Constitution.
The petitioner warned that if implemented, this law would allow the government to deprive citizens of services in other business areas as well.
The development comes a day after the Federal Board of Revenue (FBR) and telecom operators had agreed to block the mobile SIM cards of non-filers, with 5,000 SIMs to be blocked daily.
FBR stated that telecom operators will receive additional lists of non-filers on a daily basis, and have already started sending messages to non-filers warning them of SIM blocking.
The FBR believes that blocking SIMs of non-filers will increase tax revenue.
Moreover, the General Order under Income Tax Ordinance 2001, Section 114B, was issued after FBR meetings with PTA, and telecom operators. The purpose of the meetings was to proceed SIM blocking of non-filers for tax year 2023.
Earlier, the Cellular Mobile Companies refused to block the SIM cards of 506,000 identified non-compliant taxpayers due to technical and operational obstacles.
“In a statement, Telecom companies stated that there are legal complexities in implementing FBR’s directives,” Sources claimed.
It is pertinent to mention here that Federal Board of Revenue (FBR) issued an income tax general order on April 30, calling the authorities to block the SIM cards of more than 506,000 identified non-compliant taxpayers across the nation
In a recent landmark decision, the Islamabad High Court (IHC) has ruled to bar the government from blocking SIM cards of individuals who are non-filers of income tax returns. This decision has sparked a significant debate across the country, with proponents arguing for the protection of citizens’ rights, while opponents express concerns about the potential impact on tax compliance. The court’s ruling is a reflection of the ongoing efforts to balance individual rights and governmental goals. It also highlights the complex interplay between legal, economic, and social considerations. As this issue continues to evolve, it will be crucial to monitor the developments and engage in thoughtful discourse to achieve a fair and comprehensive resolution.
Source: ARY NEWS
The Islamabad High Court has prohibited the government from blocking SIMs of non-filers, responding to a telecom operator’s petition against Clause 114-B of the Income Tax Ordinance and FBR’s orders. The petitioner argued that this violated constitutional rights and could extend to other business areas. This decision follows FBR’s plan to block SIMs of non-filers, aiming to boost tax revenue. Earlier, telecom companies faced technical challenges in implementing FBR’s directives. The court’s order will be effective until the next hearing on May 27, 2024.
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