| Islamabad: The Federal Board of Revenue (FBR) has introduced short-term and long-term measures to address an anticipated revenue shortfall exceeding PKR 230 billion for the second quarter of the fiscal year 2024-25 (October-December). In response to macroeconomic shifts and shortfalls in tax collection, the FBR has focused on stricter enforcement strategies and expanded tax compliance efforts.
Read: FBR’s new POS scheme: Cash rewards for fake receipt reports, fines for retailers
During October 2024, the FBR collected PKR 877 billion, falling short of the assigned target of PKR 980 billion by PKR 103 billion. Over the first four months of the fiscal year (July-October), the FBR achieved a total collection of PKR 3,440 billion against a target of PKR 3,636 billion, resulting in a cumulative shortfall of PKR 196 billion. Officials attribute part of the shortfall to revised economic assumptions regarding GDP growth, import levels, inflation, and large-scale manufacturing, which initially influenced the tax target projections.
Read: Over 5 million returns filed as FBR holds firm on October 31 deadline
Aiming to close this gap, the FBR has strengthened efforts to capture untapped revenue sources. These include targeting high-net-worth individuals (HNIs) and tightening measures against tax evasion. The FBR has identified approximately 190,000 unregistered, high-net-worth individuals based on third-party data and has begun issuing tax notices to these individuals. It estimates PKR 7 billion in tax liabilities from these non-filers, with plans to pursue compliance from 50,000 non-filers and issue assessment orders to 25,000 of them through a dedicated tracking dashboard.
Read: FBR receives NADRA data on 195,000 wealthy non-taxpayers
To address fraudulent practices, the FBR’s Directorate General of Intelligence and Investigation Inland Revenue has intensified its crackdown on corporate tax fraud, especially regarding fake and flying invoices. The directorate, headed by a senior tax official, plans to arrest at least two individuals from corporations monthly to send a strong message against tax fraud. Additionally, it has initiated cases against companies involved in tax fraud, with a combined liability of over PKR 75 billion. |
|
