Islamabad, Pakistan, FBR tax disclosures show 9,000 people hold Rs750 billion in bank deposits while paying zero income tax, Chairman Rashid Langrial told a National Assembly panel.
Langrial briefed the National Assembly Standing Committee on Finance on Pakistan’s new tax operating model. The committee meeting was chaired by Syed Naveed Qamar.
The Federal Board of Revenue chairman said the findings came after the tax authority gained access to databases. He said the data showed major gaps between declared income and financial holdings.
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Langrial also told the committee that 98.9% of return filers report lower income on their tax returns. He said the FBR was considering a faceless taxation system to address the issue. The proposed model would remove direct contact between tax officials and taxpayers.
The FBR chief said the tax authority was increasing its use of technology as part of the new operating model. The committee was told that database access would support efforts to detect underreporting and improve compliance.
