Islamabad (TDI): Despite government efforts for revamping tax collection , the country faces a significant tax gap of Rs7.1 trillion, FBR (Federal Bureau of Revenue) Chairman Rashid Mahmood Langrial has revealed on Thursday.
Speaking at a press conference in Islamabad, the FBR chief said that the income tax gap alone stood at Rs2.4 trillion.
Geo News reported that 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, the report stressed.
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FBR Chairman was Flanked by ministers
Flanked by Federal Finance Minister Muhammad Aurangzeb, State Minister 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 digitizing the invoicing process and was digitally monitoring the sugar industry.
Meanwhile, speaking on the occasion, Finance Minister 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.
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Furthermore, shedding light on the need to increase tax resources and control deficits, State Minister Malik revealed that the tax returns increased from three million to five million by the end of October.
Reforms in FBR is also afoot for addressing the tax collection issues in the country. The government has already tabled a bill for creating a tough situation for non-filers in the country.
