| Islamabad: The Federal Board of Revenue (FBR) has finalised a strategic enforcement plan to target unregistered high-net-worth individuals (HNWIs), including non-filers and those reporting zero income. The news has been sourced from an article on November 21.
Read: FBR’s ‘collection target’ for FY 2024-25 stands firm
According to the details, the initiative, directed by Premier Shehbaz Sharif, aims to enhance revenue collection and close tax gaps by focusing on affluent individuals evading taxation.
Key Highlights
Initial Phase: The FBR will target 5,000 non-filers identified through a desk audit of transaction data. These individuals reportedly owe a cumulative tax liability of PKR 7 billion.
Profile of Targeted Individuals
Ownership of at least three vehicles.
Annual bank account profits of PKR 100 million.
Monthly credit card bills exceeding PKR 200,000.
Children enrolled in private schools.
Enforcement Mechanism: Notices will be issued after approval from the FBR chairman. A dedicated dashboard will track progress, with the first wave of notices expected to be dispatched next week.
Revenue Projections
The FBR estimates the combined net worth of these individuals at PKR is 26-27 billion, with an average net worth of PKR 5.4 million per individual. The expected tax recovery per individual is PKR 1.4 million, contributing to the total revenue target of PKR 7 billion.
This enforcement plan marks a significant step towards addressing tax evasion among affluent citizens, signalling the government’s intent to expand the tax net and improve compliance. The FBR’s field formations have completed groundwork for this initiative, reflecting a structured approach to revenue enhancement.
Read: FBR launches ePayment 2.0 on IRIS for simplified tax compliance
This move is seen as part of broader reforms aimed at strengthening Pakistan’s tax system and ensuring that high-income individuals contribute their fair share to the national exchequer. |
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