Islamabad:
The international body representing telecom operators has expressed concern over the Federal Board of Revenue’s (FBR) decision to block SIM cards of mobile individuals who do not appear in the list of active taxpayers for the tax year 2023.
GSMA (Global System for Mobile Communications Association), Head of Asia Pacific, Julian Gorman has written to Minister of Information Technology and Telecommunications, Shaza Fatima Khawaja, expressing concerns over the Income Tax General Order (ITGO) issued by the FBR on April 30 . , 2024, regarding the blocking of more than 500,000 SIMs.
GSMA emphasized that ITGO will not only impact citizens and businesses but also the vision of Digital Pakistan and especially the digitization of FBR.
“Measures such as this ITGO may have unintended consequences, particularly for vulnerable sections,” it said.
The Association acknowledged the Pakistan Telecommunication Authority’s (PTA) response, highlighting the potential negative consequences of implementing this ITGO.
Key concerns include its impact on citizens’ rights, livelihoods, access to basic services and information, as well as gender bias in SIM registration – as only 27% of SIMs are registered to female Computerized National Identity Cards ( CNIC).
Running ITGO may also limit connectivity for potential subscribers and users, affecting individual growth and well-being.
The GSMA also said such a move would have far-reaching implications for society, including gender disparities in SIM registration, impacts on educational activities, confidence in foreign investment and challenges in financial transactions and e-commerce.
Instead of punitive measures, the GSMA urged the FBR to explore alternative strategies to collect taxes while ensuring uninterrupted access to mobile services for all citizens.
The GSMA believes that taking a balanced approach to tax compliance, promoting voluntary participation and promoting financial inclusion will deliver better outcomes for both government and citizens.
The letter also referred to the GSMA Mobile Gender Gap and Children and Mobile Technology Report, providing recommendations for policy makers and stakeholders to address the challenges while promoting inclusion and protecting the rights of individuals.
Published in The Express Tribune, May 10u2024.
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