Islamabad, Jan 15: The Federal Board of Revenue (FBR) has launched a strategy under the National Transformation Plan to boost Pakistan’s tax collection system. Prime Minister Shehbaz Sharif recently approved the plan.
However, The plan, focused on stringent measures, seeks to tackle the issue of tax defaulters and short-filers, ensuring that no one escapes scrutiny, including corrupt officials within the FBR.
The FBR, as part of this initiative, will be equipping key personnel with 1,010 newly-approved vehicles, which will be used for enforcement purposes.
These vehicles, intended for officers in various tax-related services like Customs, Sales Tax, Federal Excise Duty, and Income Tax, will serve as mobile bases for auditors, inspectors, and officers to track and apprehend tax evaders.
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The plan originally called for 1,100 vehicles of 1300cc, but only 1199cc vehicles are being distributed.
This step enhance transparency and accountability in tax enforcement. The Prime Minister approved financing the Rs4.7 billion expenditure on these vehicles through the transformation fund.
Futhermore, Recent FBR statistics reveal some concerning figures about Pakistan’s tax base.
Only 6.7 million people earn income out of a population of 23.5 million.
However, only 2.5 to 3 million are registered in the tax system.
Despite 260,000 manufacturers in the country, only 42,000 are registered for sales tax, highlighting significant compliance gaps.
However, To address these issues, the Prime Minister has outlined a plan to digitally trace 218,000 unregistered manufacturers, a move that could potentially recover billions in unpaid taxes.
The FBR aims to collect an additional Rs3.5 trillion in tax revenues. Projections suggest that up to Rs6 trillion could be collected with better tax administration and stronger enforcement.
This initiative represents a bold step toward modernizing Pakistan’s tax system and ensuring greater compliance.
By utilizing technology and better tracking mechanisms, the government aims to significantly reduce tax evasion, thus increasing national revenue and contributing to economic growth.
