Telecoms complain about SIM blocking

Islamabad:

Mobile operators (MOAs) are mandated to provide uninterrupted service to their customers, except as specified in the Telecommunications Act and related regulations. However, there are no circumstances where CMOs can disconnect or block service to any customer. This was the gist of a letter written by the telecom industry to the Ministry of IT & Telecom and the Pakistan Telecommunication Authority (PTA).

While the intention of the Income Tax General Order (ITGO) may be to penalize non-compliant individuals or encourage them to come into the tax net, the specific measure being passed is not given due consideration. Neither legal analysis, guaranteed constitutional rights, nor cost-benefit review has been conducted by the Federal Board of Revenue (FBR) before the approval and implementation of the ITGO. Rushing through this ITGO will adversely affect customers, affecting their ability to access essential services, now recognized as a right to life as per various high court judgments. It also undermines the rights and operational capacity of telecommunications operators that are fully compliant with tax obligations. Any offending persons should be punished immediately without implicating and adversely affecting the telecommunication industry.

The letter further argues that if the telecom operators comply with the ITGO, the affected individuals may take legal action against the CMOs, alleging hasty, illegal and illegal SIM blocking without due process, contrary to law. It is unfair and unacceptable for CMOs to face such risks, considering their significant contribution to revenue collection. Before implementing such orders, protections or indemnities must be extended to CMOs through legal amendments to protect them from adverse consequences or customer actions/claims.

In addition, the telecom industry believes that mass blocking of SIMs would create technical challenges, requiring multiple warnings to customers prior to execution, consistent with contractual obligations to provide advance legal notice with valid reasons. Direct compliance with the ITGO is difficult, as CMOs need reasonable time and resources to develop internal processes and systems to meet such requirements. Further, there is no finalized mechanism by PTA or FBR regarding unblocking of SIMs after submission of tax returns by customers after suspension of service. Therefore, the procedural elements related to blocking and restoring mobile SIMs need thorough discussion and agreement before taking action.

Regarding consumer protection and constitutional provisions on basic human rights, consumer protection regulations oblige operators to give advance notice of service suspension. However, in this case, issuance of notice is not possible due to legal defects of ITGO.

The industry suggests that every person has a right to fair and equal treatment with due process under the law. Therefore, people affected by ITGO should be properly informed through an extensive media campaign and given show cause notices, allowing them to present their case in a court or tribunal. By following this legal and procedural framework, tax compliance measures can be enforced transparently and fairly, reducing the likelihood of legal disputes against telecommunications operators regarding the blocking or restoration of services. Further, such measures may also encourage non-compliant individuals to file their tax returns without risking significant loss to the FBR through direct SIM blocks under ITGO.

Published in The Express Tribune, May 7^u2024.

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