FTO directs FBR to issue SOP for reactivating blocked SIMs of non-filers

506,671 taxpayers' SIMs have been blocked by FBR under section 114B of Income Tax Ordinance, 2001

Tech Desk - Oct 29, 2024

The Federal Tax Ombudsman (FTO) on Monday (October 28) instructed the Federal Board of Revenue (FBR) to establish a standing operating procedure (SOP) for the guidance of the reactivation of blocked SIMs of non-filers.

This directive follows an investigation into complaints regarding SIM blocking due to inactive taxpayer status.

As observed, 506,671 taxpayers' SIMs have been blocked by FBR under Section 114B of the Income Tax Ordinance, 2001, via Income Tax General Order (ITGO) No. 1/2024. However, the ITGO lacks an SOP regarding the reactivation of SIMs.

The FTO discovered instances where SIMs remained blocked despite taxpayers fulfilling requirements for the Active Taxpayers’ List (ATL). Moreover, in some instances, SIMs weren’t reactivated even after the taxpayers fulfilled the requirements for being on ATL and filed tax returns.

The FBR portal doesn’t mention any SOPs on how the SIM of a taxpayer will be reactivated once he becomes an active taxpayer. It only mentions that the SIMs will remain blocked until ordered by FBR.

An own motion investigation was initiated on account of SIMs having been blocked by FBR for being “Inactive Taxpayer.”

Furthermore, FTO has ordered the FBR Chairman to provide an explanation to the concerned officers for not attending the hearings on the due dates.