ISLAMABAD – Tax returns were flowing in Pakistan but required numbers are yet to be achieved as Federal Board of Revenue (FBR) noticed something troubling. Out of 55Lac submissions, over 17Lac Pakistanis reported zero taxable income.
In massive revelation that sent shockwaves through Pakistan’s financial circles, Federal Board of Revenue (FBR) identified nearly one million taxpayers who declared less income than last year, raising serious suspicions of widespread tax evasion.
It created a huge challenge for FBR’s efforts to expand tax net. Among these filings, around 10lac returns show decline in reported income, with some exporters even reporting losses.
The tax collection agency warned these taxpayers, revise your returns before October 31, or face full force of the law. “Certain exporters are showing losses, but we have the data to cross-check every transaction,” said FBR officials. After the deadline, the tax authority will issue official notices and launch audits to uncover hidden income.
Despite the flood of “nil” returns, FBR is turning this data into an opportunity. Sources revealed that even these returns provide crucial financial insights that will help the authority broaden the tax base and boost revenue.
The tax authority has already sent three reminders to filers, including a stern warning to 853,000 taxpayers that the FBR has access to their bank and transaction data. The message also included assumed income calculations, signaling that the board will scrutinize all filings and take action against underreporting.
FBR officials claimed extensive information and announced to act decisively against anyone trying to hide income. Two notices will be issued before we proceed with assessments for those who fail to comply.
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