ISLAMABAD: The government on Thursday outlined the measures taken and progress achieved since it began implementing a comprehensive economic reform agenda aimed at widening the tax base through digitization of the Federal Board of Revenue (FBR), disclosing the identification of approximately 190,000 evading taxes amounting to Rs60 billion.
“… When consumers’ data was compiled/refined through an algorithm method, it disclosed that 190,000 persons leading a high-standard lifestyle [with luxury vehicles and properties] are non-filers. Following this ground-truthing of the top 5,000-6,000 was performed through field staff that confirmed around Rs7 billion in taxes from them. If calculated today on the basis of 190,000 persons who should be direct taxpayers, there is an Rs50-60 billion taxation pocket, easily,” it elaborated.
This revelation was made during a joint news conference by Minister for Finance and Revenue Senator Muhammad Aurangzeb, Minister for Information and Broadcasting Attaullah Tarar, Minister of State for Finance and Revenue Ali Pervaiz Malik, and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial.
Finance Minister Aurangzeb said that the incumbent government soon after assuming the powers introduced structural reforms in the national economy to put it on the path of sustainable development and growth, adding that the taxation reforms remained on the top of the reforms agenda.
The government, he said, was intended to enhance the tax-to-GDP ratio up to 13 percent, which was currently estimated at 9 to 10 percent of the GDP, adding the increase in revenue collection would not only strengthen the fiscal sides but also project the country’s image as responsible image as a responsible state in the comity of nations.
He said the government had introduced a bill in the National Assembly to ensure full tax compliance, besides overcoming the issues related to non-declaration and under-declaration for enhancing the revenue collection in the country.
Besides, Aurangzeb said the government was working on the technology transformation in the FBR and it introduced end to end digitization for ensuring transparency, minimizing the human interventions to control harassment and eliminate the elements of corruption to increase revenue collection.
He said the work on the design of the digitization of FBR was started in March 2024 under the dynamic leadership of Prime Minister Muhammad Shehbaz Sharif, which was approved in September and now passing through its implementation stage, focusing on key economic sectors integration to plug leakages.
