Certainly! Here is a detailed analysis of Prime Minister Shehbaz Sharif’s directives to the Federal Board of Revenue (FBR) regarding tax evasion and taxpayer facilitation:
đ 1. Directive to Identify and Penalize Tax Evaders
Utilization of Resources: PM Shehbaz has instructed the FBR to deploy its workforce and engage private sector services to identify individuals and companies involved in tax evasion. This includes recovering revenue through strict legal actions without concessions .
Public Awareness Campaign: A campaign will be launched to inform the public about government actions against tax evasion, emphasizing its negative impact on the economy .
đ€Â 2. Facilitation for Honest Taxpayers
Taxpayer Directory: The PM directed the swift completion of the Income Tax and Sales Taxpayersâ Directory to honor regular taxpayers, whom he described as the “backbone of the national economy” .
Business-Friendly Environment: The FBR must provide a facilitative environment for businesses, ensuring no harassment during tax compliance processes. Digital surveillance is preferred over physical crackdowns .
đ 3. Digital Reforms and Third-Party Audits
Digitization and Automation: The FBR is ordered to implement a digital overhaul, including a National Targeting System using e-tags and digital devices to track goods transport. This aims to curb sales tax evasion and smuggling .
International Auditors: Top international auditors will be engaged for third-party reviews of mis-declaration and under-invoicing in customs clearance. This includes appointing “super auditors” to strengthen risk management systems .
đ 4. Sector-Specific Measures and Achievements
Key Sectors: Stricter surveillance will be applied to sectors like cement, tobacco, beverages, and steel, expanding monitoring systems similar to those used in the sugar industry .
Recovery Efforts: Joint operations with the Intelligence Bureau (IB) have recovered Rs. 178 billion since April 2022 through raids targeting hoarding and tax evasion in sectors like sugar, fertilizer, and wheat .
đ 5. Conclusion and Implications
PM Shehbaz’s directives aim to create a balanced approach: rewarding compliance while penalizing evasion. The emphasis on digitization, international audits, and public awareness reflects a broader strategy to expand the tax net and ensure equitable contributions.
