The Islamabad High Court (IHC) has intervened to halt the government’s plan to block SIMs of non-filers. Today, IHC Chief Justice Aamer Farooq issued a stay order till May 27, responding to a petition filed by a mobile phone company challenging the government’s decision.
This development arises from recent discussions between the Federal Board of Revenue (FBR) and telecom operators. Initially, the FBR and telecom companies agreed to block SIMs to combat tax evasion and improve revenue. However, this decision faced opposition, leading to a legal challenge.
The FBR had announced a gradual approach to blocking SIMs, starting with small batches of 5,000 non-filers. They intended to continue this process daily. Meanwhile, telecom operators began notifying non-filers about the impending blockage of their SIMs.
The deadlock emerged when telecom operators resisted the FBR’s directive to block 500,000 SIMs of individuals not listed as active taxpayers but obligated to file tax returns. In the court hearing, the petitioner’s counsel, Salman Akram Raja, argued that this legislative amendment contradicts Article 18 of the Constitution, which guarantees the freedom to conduct business.
Raja emphasized that legislation cannot infringe upon fundamental rights enshrined in the Constitution. He asserted that the government overstepped its authority by amending laws to block mobile phone SIMs.
“Blocking more than 500,000 SIMs will result in a loss of Rs1 billion annually,” Raja contended.
The court’s decision to intervene underscores the complexities surrounding tax enforcement and constitutional rights. As the legal battle unfolds, the fate of SIMs belonging to non-filers hangs in the balance, with significant implications for both taxpayers and the government.”
