ByIslamabad, Pakistan: Finance Minister Muhammad Aurangzeb has stated that sales tax evasion by companies is responsible for 50% of the estimated Rs7 trillion tax leakage in Pakistan.
Aurangzeb emphasized the need for a fact-based discussion to address tax fraud and increase the tax-to-GDP ratio to 13%. He noted that the burden of taxation should be distributed more evenly among all sectors.
The finance minister highlighted that income tax evasion amounts to Rs1.3 trillion, and sales tax evasion accounts for approximately 50% of this figure. Dawn
He pointed out that lack of registration, misreporting of turnover and input claims, and failure to report agency functions are major contributors to tax fraud.
Aurangzeb urged companies to come forward and disclose their true tax liabilities. He warned that tax fraud can have serious consequences, including arrests and imprisonment under Section 37-A.
The finance minister’s statement underscores the significant impact of tax evasion on Pakistan’s economy and the importance of addressing this issue to improve revenue collection and ensure fair taxation.
