FBR Introduces SOP for Reactivating SIMs After Income Tax Return Filing

The Federal Board of Revenue (FBR) has announced a new system to streamline the process of unblocking mobile SIMs for taxpayers who have filed their income tax returns. Under this system, the FBR will automatically share a list of taxpayers with telecom companies to facilitate the reactivation of services. This initiative, guided by the Federal Tax Ombudsman (FTO), aims to ensure compliance with Section 114B of the Income Tax Ordinance, 2001, while effectively addressing taxpayers’ grievances. The FBR issued a detailed standard operating procedure (SOP) for reactivating SIMs after filing an income tax return.

FBR Introduces SOP for Reactivating SIMs After Income Tax Return Filing

How the Reactivation Process Works

According to the FBR’s SOP, once a taxpayer files their income tax return for the relevant tax year, their information is automatically shared with telecom service providers. The service provider is then required to restore the taxpayer’s mobile services within 1 to 2 business days.

If a taxpayer’s service remains suspended beyond three business days after filing their return, they can lodge a complaint with the concerned Commissioner. The Commissioner will review the issue, analyze the case in detail, and, if necessary, escalate it to the FBR for resolution. Alternatively, the taxpayer may contact the issuing authority of the Income Tax General Order (ITGO) for further assistance.

Key Steps in the SOP for ITGO Implementation

1. Identification and Verification of Non-Filers
   The FBR will extract a list of non-filers based on specific benchmarks using its database managed by PRAL (Pakistan Revenue Automation Limited). This list will then be sent to field offices for further scrutiny and verification.
2. Verification of Notices and Non-Filer Status
   Field formations will confirm whether legal requirements. It includes the issuance of notices under Section 114, have been fulfilled for the identified non-filers. Chief Commissioners will verify the eligibility of each case before including it in the ITGO.
3. Certification by Chief Commissioners
   After thorough verification, Chief Commissioners will issue certificates validating the non-filer status of individuals. These certified lists will form the basis of the ITGO.
4. Issuance of Income Tax General Order
   The FBR will issue the ITGO, specifying the consequences outlined in Section 114B(2) of the Income Tax Ordinance. This order will direct telecom operators and utility companies to implement the instructions immediately.
5. Communication with Service Providers
   The ITGO will be formally communicated to relevant service providers, including telecom operators. They will be required to comply promptly and provide a compliance report to the FBR within a stipulated timeframe.
6. Addressing Non-Compliance
   In cases of non-compliance, the FBR will take legal action against service providers, including prosecution under Section 196 and imposing penalties under Section 182 of the Income Tax Ordinance.
7. Monitoring and Enforcement
   A dedicated team within the FBR will monitor the enforcement of ITGOs. This team will assess compliance, track the effectiveness of the order, and regularly report outcomes to senior authorities.

See Also: FBR Launches ePayment 2.0 System to Simplify Tax Payments in Pakistan

Ensuring Compliance and Accountability

This automated system reflects FBR’s commitment to promoting compliance with tax laws while addressing taxpayers’ concerns. By facilitating quick reactivation of mobile services and introducing clear mechanisms for grievance redressal, the FBR also aims to strike a balance between enforcement and taxpayer convenience.