The Federal Board of Revenue (FBR) plans to raise property valuations by up to 75%. Based on fair market value and location, Revised valuations apply to 42 major cities and will be confirmed in an upcoming notification. Soon, the FBR will extend these revisions to an additional 15 cities.
Yesterday, FBR Chairman Rashid Langrial warned that a crackdown on non-filers would begin after November 1. He reported that income tax returns have exceeded four million, doubling from last year. He emphasized that the October 14 deadline for filing returns would not be extended. “We have detailed records on non-filers, and we will start large-scale enforcement in November as the prime minister directed. We will not overlook any tax evaders,” Langrial stated.
The FBR recently introduced 15 restrictions targeting tax defaulters and eliminated the non-filer category. Initial measures include restrictions on property and vehicle transactions, international travel, new bank account openings, and mutual fund investments.
Finance Minister Muhammad Aurangzeb pointed out a Rs3,400 billion tax evasion and fraud gap. He noted major shortfalls in several sectors: the cement sector could generate an additional Rs18 billion, the battery sector Rs11 billion, and the beverage sector also faces an Rs11 billion shortfall. “Only 14% of 300,000 manufacturers are registered,” Aurangzeb said, highlighting a tax gap of Rs18 billion in textile weaving and Rs29 billion lost in iron and steel due to overstated tax claims.
Aurangzeb also disclosed massive annual sales tax fraud by major corporations totalling Rs3.4 trillion, demonstrating the need for stricter regulations. He emphasized the criminal nature of sales tax fraud, which could result in severe penalties, including up to ten years in prison. These findings highlight the urgent need for reforms to combat widespread evasion and restore integrity to Pakistan’s tax system.
