The Federal Board of Revenue (FBR) has raised serious concerns after discovering that 1.7 million people — about one-third of all tax return filers — reported no taxable income this year. The FBR has so far received 5.5 million tax returns, according to recent reports.
FBR’s review also found that 977,000 taxpayers declared lower income than last year, including several exporters who even reported losses. The tax authority believes some of these cases may involve tax evasion and is preparing to launch audits to verify the accuracy of the reported figures.
“We have identified almost one million returns showing reduced income compared to last year. Notices will be sent to these individuals after October 31, asking them to revise their returns or face legal action,” said FBR officials.
While the high number of “nil-income” returns is concerning, the FBR says the data will help it expand the tax base and improve revenue collection.
To ensure compliance, the FBR has:
Sent multiple reminders to taxpayers to file accurate returns.
Hired 2,000 auditors to carry out detailed audits.
Warned taxpayers that the FBR has transaction data and will take strict action against those hiding income.
FBR Chairman Rashid Mahmood Langrial confirmed that 853,000 taxpayers have already been notified that the FBR has access to their financial records. He emphasized that the FBR will issue two warning notices before taking further legal action against non-compliant taxpayers.
The deadline for filing tax returns has been extended to October 31, and the FBR expects an additional three million filings before the cutoff date.
