In a significant development, the Islamabad High Court (IHC) intervened to halt the Federal Board of Revenue’s (FBR’s) decision regarding the blocking of mobile phone SIM cards belonging to non-tax filers.
Chief Justice Aamer Farooq, presiding over a single bench, granted the stay orders after hearing a petition filed by a private telecom operator represented by Barrister Salman Akram Raja.
During the proceedings, the petitioner’s counsel contended that the constitutional amendment enabling this action infringed upon the fundamental right to conduct business, as enshrined in Article 18.
Highlighting the potential financial repercussions, Raja emphasized that blocking over 500,000 SIM cards could lead to an annual loss of Rs1 billion. He argued vehemently against the government’s authority to enact such measures through legislative amendments.
The FBR had initiated the process of blocking 506,671 SIM cards of non-filers on May 11. Telecom operators began sending warning messages to the initial batch of 5,000 non-filers, as provided by the FBR. These warnings served as a precursor to the imminent SIM card blocks for non-compliant individuals.
To manage the process efficiently, the FBR and telecom operators collaborated on a phased approach, agreeing to block SIM cards in smaller, manageable groups.
Following the issuance of the stay order, the IHC adjourned the hearing until May 27, directing the respondents to furnish a response by that date.