Telecom Companies May Face Heavy Fines for Failing to Block SIMs of Non-Filers

The telecom industry, which is the largest investor and one of the highest taxpayers in the country, is being taxed at 75% for non-filers.

ISLAMABAD: The Federal Government has decided to impose substantial fines on telecom companies that fail to block SIMs of non-filers, as outlined in the latest Finance Bill.

The amended Finance Bill for the next fiscal year proposes a hefty fine of Rs 10 crore for the first violation and Rs 20 crore for each subsequent default.

The Federal Board of Revenue (FBR) will implement these penalties upon issuing a formal notification within 15 days.
Chairman of the Senate Standing Committee on Finance, Saleem Mandviwala, had recently recommended a review of the penalties for telecom companies.

During a committee meeting, concerns were raised about the tax implications for the telecom sector.

A representative of the telecom industry highlighted the challenges faced by companies due to conflicting laws and criticized the government’s policies. The representative pointed out that despite the push for a digital Pakistan, the sector faces severe taxation and regulatory hurdles.

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The telecom industry, which is the largest investor and one of the highest taxpayers in the country, is being taxed at 75% for non-filers. This leaves companies with minimal returns and burdens them with fines for not shutting down SIMs of non-filers.

Industry representatives emphasized the need for a balanced approach to ensure the sustainability of the sector while addressing non-compliance issues.

Read more: Non-Filers Face Severe Penalties: SIM, Electricity, and Gas

The new penalties aim to enforce compliance but have also sparked debate about the broader impact on the telecom industry and its contribution to the national economy.