Islamabad, December 27, 2024 – In a decisive effort to broaden the tax base, the Federal Board of Revenue (FBR), in collaboration with the National Database and Registration Authority (NADRA), has identified approximately 4.9 million wealthy individuals to be incorporated into the tax net. This joint initiative reflects the government’s firm commitment to addressing tax evasion and ensuring fiscal equity.
Advisor to the Finance Minister, Khurram Shahzad, revealed that this collaboration marks a significant step toward tackling non-filers and under-filers. Speaking in an interview, Shahzad emphasized that the FBR, leveraging NADRA’s vast database, has developed a comprehensive report to tighten laws against tax evasion and steer the economy toward greater stability and transparency.
Shahzad announced that the government has adopted a zero-tolerance policy on tax evasion, signaling an era of strict enforcement. Those who fail to comply with tax regulations will face severe restrictions, including being barred from purchasing vehicles and properties, limited access to financial services such as mutual fund investments, and challenges in bank account management. These measures are designed to pressure non-filers into fulfilling their legal tax obligations.
The advisor also disclosed plans to introduce a state-of-the-art digital platform to tackle under-filing. This advanced system will employ sophisticated algorithms to detect discrepancies between declared assets and their actual values, minimizing human intervention and ensuring greater accuracy and transparency in tax reporting.
The initiative aims to ensure that affluent individuals who have thus far avoided taxation contribute their fair share, thereby alleviating the financial burden on low-income segments. Shahzad highlighted the FBR’s upgraded data analytics capabilities, which estimate a staggering tax gap of Rs 7.1 trillion. Closing this gap is a top priority for the government as it seeks to enhance revenue streams and reduce dependency on external borrowing.
Responding to concerns, Shahzad reaffirmed the government’s commitment to resolving outstanding issues with traders through mutual dialogue, fostering a cooperative relationship with the business community.
The government’s renewed focus on fiscal discipline and tax compliance, coupled with this joint effort by FBR and NADRA, aims to strengthen Pakistan’s revenue base, foster economic growth, and ensure sustainable development. This strategic move underscores the government’s dedication to equitable taxation and long-term financial stability.
