ByLAHORE, PAKISTAN: The Federal Board of Revenue’s (FBR) ongoing efforts to combat tax evasion and reduce revenue leakages have earned praise from various sectors, but there is still a long way to go to achieve significant impact, according to Fawad Khan, spokesperson for Mustehkam Pakistan.
Fawad highlighted recent government data indicating that tax evasion in Pakistan has reached a staggering PKR 7,000 billion. Of this, approximately PKR 3,500 billion is attributed solely to sales tax evasion, primarily driven by unregistered businesses and illegal trade activities.
This massive revenue loss undermines the national economy, placing increased strain on financial resources and limiting funds available for essential public services.
Pakistan is facing a serious economic challenge due to widespread tax evasion and illegal trade, which collectively result in billions of rupees lost annually through tax leakages, stated Fawad. Business Recorder
He pointed out that without addressing these critical issues, the government may struggle to raise the tax-to-GDP ratio to its goal of 13%, which is essential for sustainable economic growth.
Fawad called for urgent measures to close the loopholes that enable such high levels of tax evasion. He asserted that by effectively sealing these channels, Pakistan could move toward a more stable economy, relieve compliant taxpayers from an unfairly high tax burden, and foster a more equitable business environment for registered enterprises.
In his concluding remarks, Fawad commended the FBR’s commitment but underscored the need for continued vigilance and enhanced enforcement to fully address the scope of tax leakages. He expressed optimism that with targeted action, the FBR can make meaningful strides toward reducing evasion, strengthening the national economy, and building a fairer tax system for all Pakistanis.
