Federal Board of Revenue (FBR) Chairman Rashid Langrial has issued a stern warning regarding tax evasion, stating that a large-scale crackdown against non-filers will commence after November 1, 2024. Addressing the media in Islamabad on Thursday, Langrial emphasized that the FBR now has complete data on non-filers and that no tax evaders will be spared.
Langrial revealed that the number of income tax returns filed this year had surpassed four million, a significant increase compared to the previous year. “There will be no extension in the deadline for submitting income tax returns,” he said, reiterating that the final date for submissions is October 14, 2024.
The FBR has recently implemented 15 key restrictions on tax defaulters, eliminating the non-filer category. Among the initial five measures being enforced are restrictions on property transactions, vehicle purchases, international travel, opening current accounts, and investing in mutual funds.
In a related development, Finance Minister Muhammad Aurangzeb also spoke during the press conference, highlighting the staggering Rs3,400 billion in tax fraud and evasion in the country. He assured that a major crackdown would be launched against sales tax evasion and confirmed that those involved in such activities would face arrest.
“We are dealing with significant tax fraud in the country,” said Aurangzeb. “There is immense untapped potential for tax collection.” The minister explained that various sectors are contributing to the shortfall. For example, the cement sector alone could generate an additional Rs18 billion in taxes, the battery sector Rs11 billion, and the beverage sector is facing a Rs11 billion shortfall.
He also pointed out that only 14% of the 300,000 manufacturers are registered, which is contributing to the Rs18 billion tax gap in the textile weaving sector. The iron and steel industry, according to Aurangzeb, is also losing a substantial Rs29 billion due to excessive input tax claims.
Both the FBR and the Finance Ministry are making it clear that the government is committed to a stricter approach, aiming to recover billions in lost revenue and ensure that tax compliance improves across all sectors.
