ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial has issued a stern warning that large-scale action against non-filers will begin after November 1.
Speaking to the media in Islamabad on Thursday, Langrial revealed that the number of income tax returns filed has exceeded four million, doubling compared to last year.
“There will be no extension in the deadline for submitting income tax returns,” he said, reiterating that the final date for submissions is October 14.
Langrial added, “We have complete data on non-filers, and action will commence on a large scale from November. The prime minister has directed that no tax evaders should be spared.”
The FBR recently decided to impose 15 restrictions on tax defaulters, removing the non-filer category. Initially, five key measures will be enforced, including restrictions on property transactions, vehicle purchases, international travel, opening current accounts, and investing in mutual funds.
Earlier in the day, Finance Minister Muhammad Aurangzeb had announced that there is tax fraud and evasion worth Rs3,400 billion in the country, and a major crackdown will be launched against sales tax evasion. Those involved in sales tax evasion will be arrested.
He made this statement during a press conference alongside the Chairman of the Federal Board of Revenue (FBR), Rashid Langrial. During the conference, slides of the tax returns of companies were presented, highlighting that many companies are involved in tax fraud worth billions of rupees.
Finance Minister Muhammad Aurangzeb stated that there is significant potential for tax collection. There is Rs3,400 billion worth of tax evasion and fraud in the country.
The cement sector alone could generate an additional Rs18 billion in taxes, the battery sector could yield Rs11 billion, and the beverage sector faces a tax shortfall of Rs11 billion.
He further noted that only 14% of the 300,000 manufacturers are registered, and there is a tax shortfall of Rs18 billion in the textile weaving sector. In the iron and steel sector, Rs29 billion is being lost due to excessive input tax claims. –Agencies
