Around 1.7 million individuals, or nearly one-third of all return filers, have reported no taxable income for the current fiscal year, prompting serious concerns at the Federal Board of Revenue (FBR), which has received a total of 5.5 million submissions, according to a news report.
The FBR’s analysis has also uncovered an alarming trend: nearly one million return filers have declared less income in their returns compared to the previous fiscal year. This includes cases where certain exporters have reported losses, prompting the FBR to prepare for audits aimed at identifying potential tax evasion.
“We have identified 977,000 returns where the declared income is lower than last year’s. Some exporters are showing losses, and we are issuing notices to them after the October 31 deadline, instructing them to revise their returns or face legal action,” said FBR sources.
The FBR has already received 5.5 million returns, but over 1.7 million of those report nil income. Despite the seemingly low returns, officials point to the valuable data they’ve gathered, which will now be used to broaden Pakistan’s narrow tax base and convert it into tax revenue.
In an effort to address these discrepancies, the FBR has sent multiple reminders to taxpayers, including three messages urging people to file their returns. After October 31, additional messages will be sent to those reporting lower income than the previous year.
To enhance enforcement, the FBR has hired 2,000 auditors who will conduct thorough audits for the fiscal year.
FBR Chairman Rashid Mahmood Langrial confirmed the FBR’s proactive stance, stating that around 853,000 return filers had been informed that the FBR possesses data on their transactions and urged them to file accurate returns. He also warned that the FBR would scrutinize returns and take action against those attempting to evade taxes.
“The FBR has extensive data and will take strict action against anyone hiding income,” Langrial said. “We will send two notices before conducting an ex parte assessment for non-responses.”
The FBR extended the tax return filing deadline to October 31, anticipating another three million returns in the final days.
