Pakistan’s Federal Board of Revenue (FBR) has launched a renewed effort to strengthen tax compliance and identify possible cases of evasion. According to recent data, nearly one-third of all income tax filers — about 1.7 million out of 5.5 million — have declared zero taxable income for the current fiscal year.
This revelation has raised serious concerns within the FBR, as the country continues to struggle with a narrow tax base and mounting fiscal pressures.
FBR’s Audit and Enforcement Drive
In response, the FBR is now preparing a major audit crackdown targeting individuals and businesses suspected of underreporting or concealing income. Officials have confirmed that tax notices will be dispatched to such filers shortly after the October 31 deadline for return submission.
“The FBR has identified nearly 977,000 taxpayers who declared less income compared to the previous fiscal year, while certain exporters have reported significant losses in their returns,” an official source revealed. “They will be asked to revise their returns, failing which, legal action will follow under the Income Tax Ordinance.”
Addressing Pakistan’s Tax Gap
Experts note that Pakistan’s tax-to-GDP ratio remains one of the lowest in the region, despite repeated reform efforts. Widespread non-compliance, fake zero-income declarations, and underreporting continue to weaken the national revenue system.
The upcoming audit initiative is seen as part of the government’s broader tax collection campaign aimed at improving documentation, increasing revenue, and ensuring fair contribution from all income groups.
The Way Forward
With mounting economic challenges and growing public scrutiny, the success of this audit drive could play a critical role in restoring public trust in Pakistan’s tax system. The FBR’s actions in the coming months will be closely watched by policymakers, investors, and citizens alike.