FBR Will Now Target High Earning Filers Who Under-Report Their Tax Returns

The Federal Board of Revenue (FBR) is currently in the process of implementing harsh enforcement measures against the high-earning class of income tax filers who make a lot of money but under-report their gross earnings. Chairman FBR Rashid Mahmood Langrial told a private TV show on Thursday that the regulator is now pulling up all its resources to target such individuals who are filers i.e. the top 4-5 percent of high-income earners who don’t pay the correct tax amount and under-file their tax returns. The federal government wants to do everything within and beyond its powers to achieve this fiscal year’s unrealistic tax target of Rs. 12.97 trillion. Through FBR, it aims to implement complicated enforcement measures. If the FBR chairman is to be believed, then authorities will now draw first blood from high-income filers to enforce tax measures this fiscal year. Last month, ProPakistani reported that FBR was in the process of restricting taxpayers from withdrawing more than Rs. 30 million in cash annually. Filers who earn over Rs. 10 million in income will only be permitted to purchase cars, while they would need to give proof of their source of income before buying property. Those earning less than Rs. 10 million will be required to justify their income before making any purchases of cars, plots, or investments in securities and mutual funds.