The Islamabad High Court has stopped the government from blocking mobile phone SIMs of tax non-filers. Chief Justice Amir Farooq has issued a stay order on the blocking until May 27 in response to a request filed by a private mobile company.
Advocate Salman Akram Raja, representing the private mobile phone company, argued in court that the amendment to the law contradicts the fundamental right of freedom of business as guaranteed by Article 18 of the Constitution. He emphasized that no legislation can be enacted that goes against the fundamental rights enshrined in the Constitution.
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Raja further contended that the government cannot obtain the power to block individuals' mobile phone SIMs through an amendment to the law. He highlighted the potential economic repercussions, stating that blocking over 500,000 SIMs annually could result in a loss of Rs1 billion for mobile phone companies.
The Islamabad High Court's decision to issue a restraining order reflects a significant development in the ongoing legal battle between the government and private mobile phone companies.
Also Read: Govt to face massive revenue loss over SIMs blockade of non-filers
The FBR initiated the process of blocking 506,671 mobile phone SIMs belonging to non-filers of tax returns on May 11.
The telecom operators commenced the process of sending warning messages to the first batch of non-filers, totalling 5,000 individuals in the first phase. The list of these 5,000 individuals was sent to the telecom operators by the FBR. These warnings served as a precursor to the imminent blocking of mobile SIMs for those all who fail to file their tax returns.
The FBR, in collaboration with telecom operators, has devised a phased approach to manage the process effectively. The telecom operators have agreed to manually block SIMs in small groups.
