The Chief Justice of Islamabad High Court (IHC) has ordered that the income tax general order 1 of 2024 regarding the blocking of SIMs of non-filers cannot be enforced without issuing notices to non-filer SIM holders.
The non-filers have to give an explanation as to why they are not filing returns under section 114B of the Income Tax Ordinance 2001. The petition was filed by a leading mobile company challenging the constitutionality and legality of the Income Tax General Order 1 of 2024.
It was argued before the Chief Justice that the ITGO applied to the mobile operators is in clear violation of Article 18 of the Constitution.
It was also contended that section 114B of the Income Tax Ordinance 2001 is not a money bill and passing of the same is also a violation of Article 73 of the Constitution.
While issuing notice to the FBR, the IHC Chief Justice has directed the FBR that no coercive measure shall be taken against the petitioner (mobile phone company) pursuant to the Income Tax General Order 1 of 2024.
It is pertinent to mention here that at the of April, the FBR issued an Income Tax General Order (ITGO) to disable the mobile phone SIMs of over 0.5 million persons who are not appearing on active taxpayer list but are liable to file the Income Tax Return for Tax Year 2023.
After initial reluctance, the telecom companies agreed to block mobile SIMs of non-filers and according to FBR till May 23, SIMs of 11,252 non-filers were blocked.
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