Failure to block SIMs of non-filers: Cellular cos face the prospect of heavy penalties
- The Finance Bill 2024 proposes imposing a penalty of Rs100 million on the first default and Rs200 million for each subsequent default on those who fail to comply with income tax general orders
ISLAMABAD: The Federal Board of Revenue (FBR) has been bound to issue a notification for the imposition of heavy penalties on mobile phone companies for not blocking SIMs of non-filers of income tax returns.
According to tax experts, the Finance Bill 2024 had proposed to impose a penalty of Rs100 million on the first default, and a Rs200 million penalty for each subsequent default on the person who fails to comply with an income tax general order issued by the Board within 15 days of issuance of such Order.
The amended Bill 2024 has proposed to reduce the said penalties to Rs50 million and Rs100 million, respectively.
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Further, the amended Bill has also proposed to empower the Board to notify the effective date of such penalty. As such, this proposed penalty shall only be effective once a Notification has been issued by the Board to that effect.
Copyright Business Recorder, 2024
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