Tax Filers’ SIMs Will Now Be Automatically Restored by Telcos

The Federal Board of Revenue (FBR) has announced a new procedure aimed at facilitating tax filers whose mobile phone SIMs have been blocked. As per the direction of the Federal Tax Ombudsman (FTO), the procedure allows automatic restoration of SIM cards for individuals who have filed their income tax returns. This initiative is set to streamline the process and provide convenience to taxpayers, eliminating the hassle of manually requesting SIM unblocking.

The Role of FBR and Telecom Companies in SIM Restoration

The FBR has implemented a procedure where the list of taxpayers who have filed their income tax returns will be automatically communicated to telecom companies. This list will enable telecom providers to unblock SIM cards for those individuals, ensuring their services are restored quickly and efficiently.

What the FBR’s Standard Operating Procedure Entails

The FBR has issued a standard operating procedure (SOP) for implementing the Income Tax General Order (ITGO) under Section 114B of the Income Tax Ordinance, 2001. The key components of this process are outlined below:

• Automatic Communication to Telecom Companies: The FBR will automatically send the list of taxpayers who have filed their income tax returns to telecom companies. This list will allow telcos to unblock the SIM cards of the concerned individuals.
• Reactivation of Services: Once the telecom companies receive the list, they are required to reactivate the services of the individuals whose details are included in the communication. The reactivation process will take place within 1 to 2 business days.
• Resolution of Issues: If a taxpayer finds that their mobile service remains suspended despite filing their income tax return, or if they face any other issue regarding the suspension of their SIM, they can raise a grievance with the concerned Commissioner. The Commissioner will analyze the case and report to the FBR for further resolution. If necessary, taxpayers can also contact the office of the issuing authority of the concerned ITGO.

How the Process Works: Step-by-Step

The FBR has established a clear procedure for the identification and verification of non-filers and the issuance of the Income Tax General Order. Below is an overview of the procedure that FBR follows:

Identification and Verification of Non-Filers

• Database Extraction: The FBR, through PRAL (Pakistan Revenue Automation (Pvt) Ltd.), will extract a list of individuals who have not filed their income tax returns. This list will be compiled based on various benchmarks.
• Communication to Field Formations: The extracted list will be sent to the relevant field formations for further scrutiny. The field formations will be responsible for verifying the eligibility of the individuals listed.

Verification by Field Formations

Upon receiving the communication from the FBR, the field formations will conduct a verification process to determine the eligibility of the individuals to be included in the Income Tax General Order.

• Chief Commissioner’s Role: The Chief Commissioners are tasked with verifying that all legal and procedural requirements have been fulfilled for the cases included in the ITGO.
• Issuance of Certification: The Chief Commissioners will issue a certificate, accompanied by a list of cases that meet the necessary criteria for inclusion in the ITGO.

Issuance of the Income Tax General Order (ITGO)

Once the Chief Commissioners verify the eligible cases, the FBR will issue the ITGO. This order will outline the consequences specified under Section 114B(2) of the Income Tax Ordinance and direct telecom operators to implement the order.

Communication to Telecom Providers

The Income Tax General Order will be formally communicated to telecom companies and other relevant service providers. They will be directed to implement the order immediately, with a compliance report to be submitted to the FBR within a specified period.

Non-Compliance and Legal Measures

In the event that telecom providers fail to comply with the instructions outlined in the ITGO, the FBR will take legal action as per the provisions of the Income Tax Ordinance, 2001. The actions may include prosecution under Section 196 and the imposition of penalties under Section 182 of the ordinance.

Monitoring and Enforcement of ITGO

To ensure the effectiveness of the Income Tax General Order, the FBR will establish a dedicated monitoring team. This team will track compliance, gather data on the outcomes of the enforcement process, and provide regular updates to higher authorities.

FAQs on Tax Filers’ SIM Restoration Procedure

1. How will my SIM be unblocked if I have filed my income tax return?
Once the FBR communicates your tax filing status to the telecom provider, your SIM will be automatically restored within 1-2 business days.

2. What should I do if my SIM is not restored even after filing my tax return?
If your SIM is not reactivated within 3 business days, you should file a grievance with the concerned Commissioner, who will investigate the issue.

3. What will happen if the telecom company doesn’t comply with the order?
If the telecom company fails to comply with the ITGO, the FBR will take legal action against them, including penalties and prosecution.

4. How long will it take for the FBR to communicate with telecom companies?
Once your tax return is filed, the FBR will communicate your status to the telecom companies promptly, and they will reactivate your SIM within 1-2 business days.

5. What documents or information do I need to provide if I face an issue with my SIM?
You may need to provide your tax return filing proof and any related correspondence to the concerned Commissioner to resolve the issue.

Conclusion

The new procedure for restoring SIM cards for tax filers is a significant step towards streamlining the process for taxpayers in Pakistan. The automatic reactivation of services by telecom companies ensures that taxpayers are not inconvenienced by service suspensions, particularly when they have fulfilled their legal obligations. By adhering to the standard operating procedures set by the FBR, the process will be efficient, transparent, and convenient for taxpayers.