KARACHI: Pakistan’s tax authority said Thursday it has blocked 210,000 SIM cards of users who have not filed tax returns in a bid to widen the revenue bracket.

Only 5.2 million people of the more than 240 million population filed income tax returns in 2022.

The Federal Board of Revenue (FBR) passed the edict in April and has since sent orders to the telecommunications authority to block the connections of 210,000 SIM cards, with 62,000 of them later restored, according to the board’s data.

“We have unblocked the SIMs of those who have paid their taxes,” FBR public relations official Bakhtiar Muhammad said.

“Nobody voluntarily comes up and pays taxes. We have to make ways for the people to pay their taxes.”

Pakistan has more than 192 million cellphone subscribers and four telecommunications service providers, according to the telecommunication authority.

Pakistanis must register a SIM card with their national identity number, which is often used for multiple connections.

“Access to telecom services is a basic human right and essential for many other fundamental services, including access to information, education, and emergency services,” an official at one of the four telecommunications companies told AFP on the condition of anonymity.

“We are in dialogue with the authorities, convincing them to use technology to help increase tax collection, as abrupt measures could disrupt the provision of these critical services.”

The South Asian country is struggling to increase its pitifully low revenue base but is hampered by a largely undocumented economy.

The government has been pushing for more loans from the International Monetary Fund to help balance its books but the lender wants Islamabad to do more to mobilize its own resources.

“This is an absurd move. Not everyone who has SIMs earns enough to fall under the tax-paying category,” Fareiha Aziz, a digital rights activist, told AFP.

“People’s livelihoods are tied to their phones, this is an overreach.”

The four telecommunications companies warned in a letter to the ministry of information technology in June that the new tax measures against non-tax filing cellphone users were “impractical” and “non workable” and would scare away foreign investment.

Tauseef Gilani, a 66-year-old businessman in Islamabad, said the novel move was going too far.

“Whatever income I earn, it’s my responsibility to contribute back to society,” Gilani said.

“However, blocking SIMs is unjust — it infringes upon freedom of expression and violates rights.”

ISLAMABAD: The government has decided to implement new electricity rates from July, announced the power division on Thursday, adding the new tariffs would not have a huge impact on the monthly bills currently paid by consumers.

The announcement comes against the backdrop of the government’s efforts to secure a staff-level agreement with the International Monetary Fund (IMF) for a bailout facility of more than $6 billion.

Some local media outlets reported the new rates reflected a per-unit increase of up to Rs5.72.

The Pakistani people have already been complaining of the high cost of living, especially since the announcement of the federal budget last month, which has fixed an ambitious tax collection target of nearly $47 billion.

“New electricity rates will be implemented from July 2024,” the power division said in a statement. “The new electricity tariff will have a slight impact on most people’s monthly bills.”

“To minimize the increase in electricity bills, the government will provide a subsidy of Rs440 billion,” it added. “For 16.8 million or 58 percent poor household consumers, the increase will be less than two percent.”

The statement said for the relatively wealthier 42 percent consumers, the average increase will be nine percent.

The power division said the electricity rates were expected to decrease as the economy improved.

“By January 2025, electricity rates for all consumers are expected to be on average 3 percent lower compared to June 2024,” it maintained.

The statement said the burden on the industrial sector had been reduced by Rs150 billion to promote production and strengthen the country’s economy.

“The notification of electricity prices will be issued after NEPRA’s [National Electric Power Regulatory Authority’s] hearing,” it added.