Islamabad, Oct 25: NADRA, the government body responsible for the nation’s identification and registration, has uncovered a ring of the rich who are evading FBR taxes, thus shedding light on successful members of Pakistan society not paying taxes.
This fact, emerging from data analysis conducted by NADRA recently, has raised concern in FBR as well as the common public to address the towering challenges to augment the tax collection system in Pakistan.
NADRA Initiative and Findings
NADRA program was to help compare the information about a person’s income and assets with the income they declare, people with hidden or undeclared assets would be quickly identified.
By merging the available national databases, NADRA managed to narrow down the differences in return declarations, and I identified Pakistanis with a high standard of living avoiding FBR taxes through unstated assets and income.
The Impact on Pakistan’s Economy
People living in Pakistan who are affluent sector are involved in tax evasion by not paying FBR taxes which hamper the governments’ requisite revenues and put constraints on funding sectors like social services, infrastructure, and public programs in Pakistan.
Such a situation leads to higher levels of taxation from the lower half of the population thus putting significant economic pressure on those who cannot rent, avoid paying taxes.
When formulating its budgets, the government is in search of economic stability, and to that end, the due taxes from the various income groups are collectible to fund and expand the string of services to the nation.
Such exposed tax evasion increases the pressure on enhancing the Pakistan’s tax structure transparency and accountability. When the government demands money from the rich, it has a chance to level the tax system, reduce inequality in the country and make the economy better.
FBR’s Response to NADRA’s Revelations
Like NADRA, the FBR personnel have assured their organization to increase the level of audit and investigated.
Measures are being taken to launch an aggressive campaign against the affluent Pakistanis who have been avoiding paying FBR taxes to make a clear signal to all such would-be tax evaders.
These measures are part of FBR efforts to bring down fiscal deficits and make everyone equally liable for the country’s funding.
The FBR is also planning to enhance the technology to check more effective and efficient flow of money related transactions and look out for any suspicious activity that may lead to tax evasion.
Indeed, FBR with the help of NADRA is planning to tighten compliance standards and potentially open up cases against such individuals or entities.
