The Federal Board of Revenue (FBR) is gearing up for a major crackdown on non-filers and tax evaders, signaling the government’s intent to combat widespread tax fraud in the country.
FBR Chairman Rashid Langrial, addressing the media in Islamabad on Thursday, announced that large-scale action against non-filers would begin after November 1. He shared that income tax returns have surged past four million this year, doubling the number filed last year.
“There will be no deadline extension for filing income tax returns,” Langrial emphasized, reaffirming that October 14 is the final date for submissions.
He added, “We have comprehensive data on non-filers, and a massive operation will be launched in November. The prime minister has made it clear that tax evaders will not be spared.”
To step up enforcement, the FBR has introduced 15 new restrictions targeting tax defaulters, with the non-filer category being eliminated. The first phase will impose five critical restrictions, including bans on property transactions, vehicle purchases, international travel, opening current accounts, and investments in mutual funds.
In a related development, Finance Minister Muhammad Aurangzeb disclosed that the country is facing Rs3,400 billion in tax evasion and fraud. He warned that a stringent crackdown on sales tax evasion is forthcoming, with arrests of those involved.
At a press conference, Aurangzeb, alongside FBR Chairman Langrial, revealed that numerous companies are implicated in large-scale tax fraud, with sectors like cement, batteries, beverages, and textiles showing significant tax shortfalls.
For instance, the cement industry alone could contribute an additional Rs18 billion, while the iron and steel sector is losing Rs29 billion due to excessive input tax claims.