Quetta (News Desk): Chairman of the Senate Standing Committee on Defence Production, Senator Muhammad Abdul Qadir, has urged the Federal Board of Revenue (FBR) to bring Pakistan’s top 0.6 million wealthiest tax evaders under scrutiny. He highlighted that these affluent individuals collectively evade taxes worth PKR 16 trillion annually, a malpractice that he claims is impossible without FBR’s collusion.
In a statement, Senator Abdul Qadir criticized the lack of government action against the top 5% of high-income earners, noting that their evasion significantly contributes to the country’s tax gap, which is projected to reach PKR 7.1 trillion this fiscal year, up from PKR 6.2 trillion last year.
“These individuals own substantial assets, luxury vehicles, and earn significant incomes but fail to contribute to the tax net,” he said, adding that out of the estimated 3.3 million individuals in the top 5% income bracket, only 600,000 file tax returns, leaving 2.7 million outside the tax system.
Senator Qadir proposed stringent measures to address the issue, such as barring non-filers from purchasing high-value assets, luxury vehicles, and properties or opening bank accounts until they comply with tax laws. He emphasized that 95% of existing taxpayers should not be adversely affected by amendments to tax laws aimed at targeting these affluent evaders.
The senator called for the digitalization of FBR’s processes and welcomed the government’s strategy to implement such reforms. He urged FBR to enforce accountability within its ranks and prosecute both tax evaders and any complicit officials.
“FBR has sent tax notices to 186,000 wealthy individuals who possess significant assets but fail to pay taxes adequately. This number must expand to include all 0.6 million affluent tax dodgers,” he stated.
Senator Qadir concluded by stressing that the government must focus its tax collection efforts on the wealthiest 5% and ensure impartial action to widen the tax net. He advocated for strict penalties against tax evaders and their accomplices within the system to set an example and deter future violations.
