FBR launches ‘major crackdown’ against tax evaders

The Federal Board of Revenue (FBR) has intensified its efforts to combat tax evasion, with Chairman Rashid Mahmood Langrial warning of strict legal action against individuals failing to file their tax returns. The campaign, targeting high-profile sectors, aims to reduce Pakistan’s significant tax gap and enhance revenue collection.

Speaking at a press conference in Islamabad, Langrial revealed that the FBR has issued notices to 190,000 individuals as part of this initiative. Among them, 38,000 have complied, collectively filing returns amounting to Rs370 million. The chairman emphasized that those who fail to respond or pay their taxes will face legal consequences.

“This is a decisive step in addressing the growing tax gap in Pakistan, which currently stands at Rs7.1 trillion, with Rs2.4 trillion attributed solely to income tax,” Langrial stated.

The FBR’s crackdown particularly targets top-tier taxpayers and high-revenue sectors. Langrial underscored the government’s focus on digitizing the tax filing process to make compliance easier for taxpayers, particularly the top 5% of contributors.

One area under scrutiny is Punjab’s sugar mills, where investigations uncovered the use of fake or flying invoices. Langrial confirmed that several mills have been caught engaging in fraudulent activities, signaling the FBR’s determination to root out such practices.

The chairman reiterated the government’s commitment to addressing the systemic challenges of tax evasion. “This initiative is not just about enforcement but about creating a culture of compliance,” he remarked.

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