The Federal Board of Revenue (FBR) is taking a significant step towards increasing tax revenue by bringing 2.8 million potential households into the tax net, estimated to contribute around Rs1.6 trillion to the national economy.
According to FBR spokesperson Bakhtiar Muhammad, out of 3.5 million top households liable to pay taxes, 2.8 million are currently not paying taxes. The government’s efforts to enhance the tax-to-GDP ratio have resulted in a notable increase in tax filers and collections during the current fiscal year.
The filing of tax returns has seen a remarkable 105 percent rise from 1.8 million to 3.7 million, thanks to the government’s prudent policies. The FBR plans to impose 15 restrictions on non-filers within the next few months through a finance bill.
Furthermore, the spokesperson highlighted the automation of payment and invoicing systems to make it impossible for non-filers to engage in financial activities. Digitization initiatives and revenue collection targets have been surpassing expectations, indicating a positive trend in tax compliance and administration.
Overall, the FBR is focused on implementing major reforms to optimize tax policy, digitalization, HR capacity building, anti-smuggling measures, and tax administration for sustainable revenue growth.