Pakistan’s tax filing numbers are rising, but the Federal Board of Revenue (FBR) has flagged a concerning trend: out of 5.5 million returns submitted, over 1.7 million filers declared zero taxable income.
In a major development that has raised alarm within financial circles, the FBR also found that nearly one million taxpayers reported lower incomes than last year, indicating possible large-scale tax evasion. Around one million returns showed a drop in income, including cases where exporters claimed losses.
The FBR has warned such filers to revise their returns by October 31 or face strict legal action. Officials stated they possess data to verify all transactions and will begin issuing notices and conducting audits after the deadline to uncover concealed income.
Despite the surge in “nil” returns, authorities see an opportunity. Officials say even zero-income filings provide valuable data that will support efforts to widen the tax net and increase revenue.
The FBR has already issued three reminders, including firm warnings to 853,000 taxpayers that their bank and financial records are accessible to the authority. These reminders also included estimated income figures, signaling that underreported filings will be closely examined.
Officials affirmed that comprehensive data is available and vowed firm action against anyone attempting to conceal earnings. Non-compliant filers will receive two notices before assessments move forward.
Also Read FBR Extends Income Tax Filing Deadline Despite Earlier Refusal
