Pakistani Government Explores Alternatives to SIM Blocking for Non-Filers

The government of Pakistan is planning to take another step against non-filers of tax after facing difficulties implementing their first plan to block the SIMs of non-filers. Previous attempts by the government to convince people to file taxes with SIM blocking proved to be less effective as mobile companies and Pakistan Telecommunication Authority (PTA) did not fully cooperate.

Potential Actions Against Non-Filers

Two potential scenarios are currently under consideration:

• Legal Action: The government can file a case in the Islamabad High Court against non-compliant mobile phone companies. This step will help to overcome the delays and challenges due to ongoing legal proceedings.
• Additional Tax: Another suggestion is to impose 2.5% extra withholding tax on non-filers cards but there are concerns about the effectiveness of this step and its potential effect on tax collection goals.

Government’s Focus: Increasing Tax Base

Government officials are saying that the main focus should be on increasing the tax base rather than just collecting more taxes. The government will decide what to do after May 15.