Federal Board of Revenue (FBR) has decided to launch countrywide crackdown against tax evasion, sources said on Saturday. The taxation authority has prepared a list of 11,000 persons from major cities including Lahore and Karachi, sources said. The list included industrialists, mill owners, traders, property dealers and wholesalers, according to sources. The grip will be tightened against tax defaulters, and they will also be arrested, sources said. The FBR’s list of tax evaders included people from Karachi, Lahore, Faisalabad, Rawalpindi and Multan. “We have substantial evidence against tax defaulters,” FBR sources said.

 “They have to produce documents within one week’s period after tax notice,” FBR sources added. A global market research firm in a survey report in June disclosed staggering 956 billion rupees tax evasion in Pakistan. Ipsos, the third largest market research firm in the world, made the sensational disclosure after its survey of five industrial sectors including real estate, tea, cigarette, tyres, oil and pharmaceutical sectors. The research report pointed out massive 500 billion rupees tax evasion in a year in the real estate sector of the economy. Tax theft by cigarette traders is causing Pakistan a loss of Rs240 billion annually. The research report pointed out annually 45 billion tax evasion in tea business and 65 billion tax theft in pharmaceutical sector of the national economy. Moreover, tyres and oil sector inflicting 106 billion rupees revenue losses to the economy annually, according to the report.

 
Credit: Independent News Pakistan (INP)