The Finance Bill 2024 initially proposed a steep penalty of Rs100 million for the first instance of non-compliance and Rs200 million for subsequent defaults. This penalty was levied on companies that failed to comply with an income tax general order issued by the FBR within 15 days.

However, amendments to the Bill have reduced these penalties to Rs50 million and Rs100 million, respectively. The amended Bill also grants the FBR the authority to determine the effective date of these penalties.

This means that the penalties will only come into effect once the FBR issues a notification announcing the implementation date.

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Tax experts have highlighted that the FBR’s move to impose these penalties aims to encourage tax compliance and curb the use of unregistered SIM cards.

The notification is expected to be issued soon, after which mobile phone companies will be required to comply with the new regulations.