FBR targets 5,000 wealthy non-filers in Rs7 billion tax crackdown

ISLAMABAD: The Federal Board of Revenue (FBR) is gearing up to take strict action against wealthy individuals who haven’t registered for taxes or have been submitting nil returns, following the directives of Prime Minister Shehbaz Sharif.

This move is part of a bigger effort to crack down on high-net-worth individuals who either fail to file tax returns or underreport their income and assets.

According to Business Recorder, the tax authority has completed all necessary preparations and is now ready to implement this enforcement plan. The first phase of the initiative will target 5,000 non-filers and it is expected to bring in around Rs7 billion in unpaid taxes.

These notices will be issued once the FBR chairman gives the final approval. The entire process will be closely monitored using a specialised dashboard ensuring that the enforcement stays on track.

The FBR, before this stage, conducted an extensive analysis of transaction data for about 200,000 non-filers. From this, they’ve zeroed in on the top 5,000 high-net-worth individuals. What’s interesting is that these individuals share a few common traits.

Most of them own at least three cars, earn significant profits from bank accounts—around Rs100 million in some cases—spend more than Rs200,000 monthly on credit card bills, and send their children to private schools.

These 5,000 individuals collectively hold an estimated net worth of Rs26 to Rs27 billion, and the FBR believes this group alone could generate Rs7 billion in tax revenue. On average, each person is expected to pay around Rs1.4 million in income taxes based on their financial profiles.

Read next: Gold prices surge for fourth day as Russia-Ukraine tensions intensify