ISLAMABAD: Amid Prime Minister Shehbaz Sharif’s government’s strenuous efforts to expand the tax net and increase revenue generation, Federal Bureau of Revenue (FBR) Chairman Rashid Mahmood Langrial has revealed that the country faces a mammoth tax gap of Rs7.1 trillion.
Speaking at a press conference in Islamabad on Thursday, the FBR chief said that the income tax gap stood at Rs2.4 trillion.
Underscoring the reforms in the tax sector, Langrial revealed that the tax authority issued notices to 19,000 people, out of which 38,000 submitted their tax returns amounting to Rs370.7 million.
“Our focus is on the top five per cent,” he said while warning that action would be taken against those who didn’t file their tax returns.
Flanked by Federal Finance Minister Muhammad Aurangzeb, Minister of State for Finance and Revenue Ali Pervaiz Malik and Information Minister Attaullah Tarar, the FBR chairman underscored the reforms in the tax sector, saying that the authority was digitising the invoicing process and was digitally monitoring the sugar industry.
Meanwhile, speaking on the occasion, Finance czar Aurangzeb said that the government intends to increase the country’s tax to gross domestic product (GDP) ratio from 9-10% to 13.5% via the recently tabled Tax Laws (Amendment) Bill, 2024.
“We have to achieve this tax-related target in three years,” he remarked while highlighting the need to curb tax evasion and formalise the informal sector.
The federal minister further added that the existing potential for more tax stood at Rs71 billion.
This is a developing story and is being updated with more details.
