Islamabad, Pakistan – The Federal Board of Revenue (FBR) has proposed stringent measures to crack down on tax evasion. These measures include freezing bank accounts, prohibiting property and vehicle purchases, and disconnecting utilities.
The FBR is facing a significant tax shortfall in the first quarter of the fiscal year, driven by the IMF’s Extended Fund Facility (EFF) program. To address this, the FBR is targeting millions of non-filers, including two million out of six million return filers.
The FBR has proposed categorizing non-filers into three groups and imposing fines of up to Rs1 million for incorrect or incomplete tax returns. These proposals would require parliamentary approval. Profit
For the most severe cases of tax evasion, the FBR has suggested even stricter measures, including enhanced enforcement and the use of artificial intelligence.
The FBR’s internal assessments indicate a tax shortfall of over Rs220 billion in the first quarter. The FBR is struggling to meet its annual tax collection target of Rs12,970 billion, which was agreed upon with the IMF.
The FBR’s actions are a response to the government’s efforts to improve tax compliance and meet its financial obligations.
