The Federal Board of Revenue (FBR), acting on Prime Minister Shehbaz Sharif’s directive, has unveiled a stringent enforcement plan to target affluent individuals evading taxes. The initiative focuses on unregistered persons, non-filers, and individuals declaring nil income, especially those concealing income or significant assets.
Officials report that preparations for implementing this plan are complete, with field formations authorized to issue notices upon approval from the FBR chairman. As part of the first phase, 5,000 non-filers have been identified for action, with an estimated tax liability of Rs 7 billion. The FBR has developed a dedicated dashboard to monitor these notices and ensure efficient tracking and compliance.
The enforcement plan stems from a detailed desk audit analyzing transaction data from 200,000 non-filers. This exercise narrowed the focus to 5,000 high-net-worth individuals with notable financial footprints, including ownership of at least three vehicles, earning over Rs 100 million in bank profits, incurring monthly credit card bills exceeding Rs 200,000, and paying private school fees for their children.
The cumulative net worth of these individuals is estimated at Rs 26–27 billion, with the potential to generate Rs 7 billion in revenue. On average, each individual has a net worth of Rs 5.4 million and could owe approximately Rs 1.4 million in income tax.
This enforcement drive represents the FBR’s determined effort to broaden the tax base and address tax evasion by high-income individuals. It also highlights the government’s commitment to fiscal equity, ensuring that wealthier segments contribute their fair share to national revenue.
Additionally, this campaign aligns with broader economic objectives, including bolstering tax compliance and alleviating fiscal pressures. With the economy facing significant challenges, enhancing revenue generation is crucial for meeting development goals and fulfilling international obligations.
The FBR’s move is expected to send a strong signal to individuals and businesses about the seriousness of tax compliance. It aims to foster a culture of accountability and transparency within the tax system, ensuring fairness and equity. By targeting high-net-worth individuals, the government is not only addressing revenue leakages but also creating a precedent to discourage tax evasion at all levels of income.
This enforcement initiative is part of a broader effort to reform the tax system, promote compliance, and strengthen public trust in revenue collection mechanisms.
