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KARACHI: The Pakistan Tax Department on Thursday said it has blocked 210,000 SIM cards of users who have not filed tax returns in order to increase the tax bracket.

Of the total population of more than 240 million people, only 5.2 million people filed an income tax return in 2022.

The Federal Board of Revenue (FBR) issued the order in April and has since directed the telecommunications authority to block the connections of 210,000 SIM cards, 62,000 of which were later restored, according to the board.

“We have unlocked the SIM cards of those who have paid their taxes,” said Bakhtiar Muhammad, FBR’s public relations officer.

“Nobody pays taxes voluntarily. We have to give people the opportunity to pay their taxes.”

According to the Telecommunications Authority, there are more than 192 million mobile phone subscribers and four telecommunications service providers in Pakistan.

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

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

“We are in discussions with authorities to persuade them to use the technology to increase tax revenues, as abrupt measures could affect the provision of these important services.”

The South Asian country is struggling to increase its woefully low revenue base, but is hampered by a largely illegal economy.

The government is pushing for more loans from the International Monetary Fund to balance its balance sheet, but the lender is demanding that Islamabad mobilize more of its own funds.

“This is an absurd move. Not everyone who has a SIM card earns enough to be subject to tax,” Fareifa Aziz, a digital rights activist, told AFP.

“People’s livelihoods depend on their phones. This is going beyond the scope.”

The four telecom companies warned in a letter to the Ministry of Information Technology in June that the new tax measures for mobile phone users who do not pay their taxes were “impractical” and “unworkable” and would deter foreign investment.

Tauseef Gilani, a 66-year-old businessman from Islamabad, said the novel move went too far.

“Regardless of my income, it is my responsibility to give back to society,” Gilani said.

“However, blocking SIM cards is unfair – it impairs freedom of expression and violates human rights.”