One of the major issues with this approach is that it penalizes individuals who had been compliant taxpayers in the past but have failed to file their most recent tax returns. By targeting these individuals, the FBR is essentially punishing those who had previously followed the law, sending a discouraging message to taxpayers.

On the other hand, those who have never filed taxes are not affected and can continue to use mobile connectivity without any legal repercussions. This creates an unfair situation where compliance is not rewarded but rather punished. Furthermore, the decision to block SIMs not only affects individuals but also has broader economic implications.

By cutting off access to mobile services, the tax authorities risk losing out on revenue generated through airtime and data consumption. This action could also undermine the profitability of Telecom companies, ultimately reducing taxable profits. In essence, the FBR’s strategy is more likely to decrease tax revenue rather than increase it, highlighting the shortsightedness of this approach.

Such punitive measures only serve to erode trust in the tax system and deter more people from voluntarily filing their taxes. The recent lukewarm response to the registration drive for taxing retailers is a testament to the lack of confidence in the tax authorities. Instead of resorting to penalties and threats, there is a need for a more constructive approach that incentivizes tax compliance and fosters a culture of voluntary tax filing.

It is essential to recognize that every citizen contributes to the economy through various means, whether it is through mobile consumption or other transactions. Therefore, it is crucial to treat taxpayers with respect and dignity, and to encourage tax compliance through positive reinforcement rather than coercion.

The current system that labels individuals as filers or non-filers is flawed and fails to acknowledge that every adult should be fulfilling their tax obligations. To address these challenges, there is a pressing need for a fundamental reevaluation of the tax collection strategies in Pakistan. Tax policy should be reformed to make the process of filing taxes more streamlined and user-friendly.

Focus should be on promoting tax compliance through education, outreach, and support services to assist taxpayers in meeting their obligations. Rather than instilling fear and mistrust, the tax authorities should strive to build a relationship of cooperation and mutual benefit with taxpayers.

FBR’s decision to block SIMs as a means of tax enforcement is a clear example of how not to collect taxes effectively. It is evident that punitive measures alone are not the solution to increasing tax revenue. A comprehensive overhaul of the tax system, coupled with a shift towards a more people centric approach, is necessary to rebuild trust, encourage compliance, and ultimately boost tax collection in Pakistan. It is time for a new direction in tax policy that prioritizes engagement, empowerment, and fairness for all taxpayers.