PM Shehbaz orders inclusion of 4.5 million non-filers into tax net

ISLAMABAD: Prime Minister Shehbaz Sharif has mandated swift action to incorporate non-filers with the capability to pay taxes into the tax net. This directive came after it was revealed that 4.5 million potential taxpayers have been identified.

During a review meeting on Federal Board of Revenue (FBR) reforms held on Friday, the prime minister was briefed on the identification of these individuals. He emphasised the urgency of bringing them under the tax umbrella without delay.

Prime Minister Sharif also requested a comprehensive action plan with clear objectives for the next phase of FBR reforms and digitisation, to be presented in the upcoming meeting. He was updated on the ongoing rapid implementation of his directives and the nearing completion of the FBR’s system and workforce review.

Initial steps have led to the identification and interception of around 4,000 companies involved in fraudulent and under-invoiced sales tax refunds. The prime minister instructed the immediate cessation of discretionary powers held by customs appraisers and demanded a report on the implementation of these orders within 24 hours.

The meeting noted a positive development with over 300,000 new taxpayers filing returns in recent weeks due to government initiatives. Furthermore, fraudulent sales tax refund claims from 4,000 companies have been halted.

Prime Minister Sharif stressed that individuals engaged in tax evasion, along with any complicit officials, would face strict penalties. Conversely, taxpayers fulfilling their obligations would be duly recognised.

He also highlighted the need for modern, high-quality scanners at ports to eliminate corruption and ensure system transparency. Digitising the tax system, he said, is the government’s top priority to curb extensive tax evasion.

To monitor progress, Prime Minister Sharif called for the immediate creation of a dashboard tracking the digitisation and reform efforts. He expressed his vision of implementing a world-class taxation system in Pakistan and advocated for appointing reputable professionals to formulate tax policy.

The meeting underscored the government’s commitment to enhancing transparency and efficiency within the tax system through these reforms.

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