In a letter to the IT ministry and PTA, telecom companies said that the order issued by the FBR is illegal and ultra vires of the Constitution of Pakistan and the Telecom Act. “We are of the view that whilst the intention of the ITGO and Section 114B may be to penalize non-compliant individuals or to coerce or encourage them to come within the tax net the specific measure being adopted has not been properly thought through; neither a legal analysis, guaranteed constitutional rights, or a cost-benefit review has been undertaken by FBR before passing and implementing ITGO,” the letter said.
In a letter to the IT ministry and PTA, telecom companies stated that FBR’s order is illegal and beyond the scope of Pakistan’s Constitution and the Telecom Act.
The letter expressed concern that while the intention may be to incentivize tax compliance, the specific measure lacks thorough legal analysis, consideration of constitutional rights, or a cost-benefit review.
Telecom companies expressed concerns that the rushed implementation of the Income Tax General Order (ITGO) will adversely affect customers, impacting their access to essential services, which are considered a right to life by superior court judgments. They emphasized that compliant telecom operators should not be penalized for the actions of non-compliant individuals. Compliance with the order could expose operators to litigation from affected individuals listed in the ITGO.
The telecom operators called for inclusive consultations involving all stakeholders to find a solution that balances the government’s revenue interests with the telecom industry’s commercial concerns.
Last week, FBR issued the ITGO to block the mobile SIMs of over 0.5 million non-active taxpayers. The order instructed PTA and telecom operators to block SIMs associated with these individuals until further notice, with a compliance report due on May 15.
