ISLAMABAD: Amid Prime Minister Shehbaz Sharif’s government’s strenuous efforts to widen the tax net and increase revenue generation, Federal Bureau of Revenue (FBR) Chairman Rashid Mahmood Langrial has revealed that the country is facing a gigantic fiscal gap of Rs 7.1 trillion.
Addressing a press conference in Islamabad on Thursday, the FBR chief said the income tax gap amounted to Rs 2.4 trillion.
Underlining the reforms in the tax sector, Langrial revealed that the tax authority issued notices to 19,000 people, of which 38,000 filed their tax returns worth Rs 370.7 million.
“Our focus is on the richest five percent,” he said, while warning that action would be taken against those who did not file their tax returns.
Flanked by Federal Finance Minister Muhammad Aurangzeb, Minister of State for Finance and Revenue Ali Pervaiz Malik and Information Minister Attaullah Tarar, the FBR chairman highlighted reforms in the tax sector and asserted that the authority was digitizing the billing process and digitally monitoring the sugar sector. industry.
Meanwhile, speaking on the occasion, Finance Tsar Aurangzeb said that the government intends to increase the country’s tax-to-gross domestic product (GDP) ratio from 9-10% to 13.5% through the Recently introduced Taxation Laws (Amendment) Bill, 2024.
“We have to achieve this fiscal objective in three years,” he stressed while highlighting the need to stop tax evasion and formalize the informal sector.
The federal minister further added that the existing potential for tax hike was Rs 71,000 crore.
This is a developing story and is being updated with more details.
