Nearly one-third of Pakistan’s tax filers — around 1.7 million individuals — have declared zero taxable income, raising serious concerns about the integrity of the country’s tax system, The News reported on Tuesday, citing official sources.
Out of a total of 5.5 million returns filed so far, the large volume of “nil” declarations has presented a significant challenge for the Federal Board of Revenue (FBR). Adding to this concern, nearly one million taxpayers have reported lower incomes this fiscal year compared to the previous one, prompting fears of widespread tax evasion.
According to FBR officials, 977,000 returns showed reduced income from last year, while several exporters reported losses. The tax authority has decided to send notices to these filers after the October 31 deadline, asking them to revise their returns or face legal consequences.
Despite the surge in zero-income returns, officials insist that valuable data has been gathered, which will now be used to broaden the tax base and strengthen monitoring. The FBR has also recruited 2,000 auditors to enhance scrutiny and ensure effective audits for the current fiscal year.
FBR Chairman Rashid Mahmood Langrial confirmed that the authority had already sent messages to over 850,000 filers, reminding them that the department holds data on their transactions and advising them to file returns carefully. The FBR also issued assumption-based income assessments, warning that discrepancies or concealed earnings could trigger detailed audits.
Langrial emphasized that the FBR would act firmly against tax evaders, with two warning notices issued before an ex parte assessment. Officials added that many individuals declaring no income had evidence of major financial dealings, indicating deliberate concealment.
The filing deadline, extended to October 31, aims to attract at least three million more returns, as the FBR intensifies its crackdown on underreporting and tax noncompliance.
