FBR Set to Initiate Nationwide Campaign Against Tax Evasion
Sources report that the Federal Board of Revenue (FBR) in Pakistan has announced an extensive crackdown against tax evasion on a national scale. As part of this initiative, the FBR has compiled a list of approximately 11,000 individuals, most of whom belong to major cities such as Lahore and Karachi etc. This list is diversified, containing various professionals such as industrialists, traders, mill owners, wholesalers, and property dealers, all of whom are suspected of potential tax evasion, according to insiders.
The Federal Board of Revenue (FBR) has adopted a firm stand and is determined to escalate its actions against tax defaulters, which may include the apprehension of individuals involved. Notably, the list of people accused of tax evasion isn’t limited to one city, but it spans across major cities like Karachi, Lahore, Faisalabad, Rawalpindi, and Multan. This shows the issue of tax is becoming common in many places, and we need to do something about it.
FBR sources confirm that they have substantial evidence to back their claims against these tax defaulters, highlighting their strong commitment to making sure people file timely tax returns. To streamline the process and reinforce their resolve, the FBR has mandated that individuals who receive tax notices must produce the necessary documents within one week, as per FBR sources.
The recent crackdown on tax evasion has gained urgency due to a survey conducted by Ipsos, a reputable global market research firm, in June. Ipsos, widely recognized as one of the largest market research firms worldwide, uncovered a shocking amount of 956 billion rupees in tax evasion throughout Pakistan. This extensive survey encompassed five significant industrial sectors, namely real estate, cigarettes, tea, oil, tires, and the pharmaceutical sector.
The research report exposed substantial tax evasion, particularly in the real estate sector, which recorded an annual evasion of 500 billion rupees. Additionally, cigarette traders were identified as a significant contributor to the country’s fiscal challenges, with annual tax losses amounting to 240 billion rupees.
Additionally, the survey revealed that the tea industry evaded taxes amounting to 45 billion rupees annually, while the pharmaceutical sector evaded taxes worth 65 billion rupees each year. The Ipsos report also implicated the tire as well as oil sectors, which contributed to significant annual revenue losses estimated at 106 billion rupees to the national economy.
The FBR, upon discovering these findings, has been prompted to implement proactive measures in order to effectively tackle tax evasion. This highlights the urgency and importance of addressing this issue for the sake of the country’s economic stability.