GSMA opposes FBR’S decision to block SIMS of non-active taxpayers

GLOBAL ASSOCIATION HIGHLIGHTS POTENTIAL ADVERSE EFFECTS ON DIGITAL PAKISTAN AND INDIVIDUAL RIGHTS

The Global System for Mobile Communications Association (GSMA), represented by its Head of Asia Pacific, Julian Gorman, has voiced apprehensions regarding the Federal Board of Revenue’s (FBR) recent policy. The policy mandates the blocking of mobile SIMS for individuals absent from the active taxpayer list for Tax Year 2023.

In a letter addressed to the Minister of State for Information Technology and Telecommunication, Shaza Fatima Khawaja, Gorman criticized the Income

Tax General Order (ITGO) enacted by the FBR on April 30, 2024. This order could lead to the deactivation of over 500,000 SIMS, a move that GSMA argues could derail the progress towards Digital Pakistan and FBR’S own digitization efforts.

GSMA highlighted several concerns including potential violations of citizen rights, the impact on livelihoods, and restricted access to crucial services and information. The organization pointed out that the measure could disproportionately affect women, noting that only 27% of SIMS are registered to female Computerised National Identity Cards (CNICS).

The body also warned of broader societal impacts such as gender disparities, interruptions to educational endeavors, diminished foreign investment confidence, and complications in financial transactions and e-commerce.

GSMA recommended that instead of punitive approaches, the FBR should consider alternative, less disruptive methods of enhancing tax collection. They advocate for maintaining uninterrupted mobile service access to all citizens, suggesting that fostering voluntary compliance and economic inclusivity would be more effective. The GSMA’S letter also referenced their Mobile Gender Gap Report and resources on Children and Mobile Technology, offering further guidance on crafting inclusive policies that protect individual rights while promoting broader social and economic benefits.