Federal Finance Minister Muhammad Aurangzeb has revealed that tax evasion amounting to billions of rupees is taking place across Pakistan.
During a press conference alongside the Chairman of the Federal Board of Revenue (FBR), the minister estimated that tax fraud across the country involves sums in the billions.
Providing further details, Minister Aurangzeb stated that various companies are involved in tax fraud worth approximately Rs. 29 billion. Overall, the scale of sales tax evasion stands at a staggering Rs. 128 billion.
In particular, the textile sector is responsible for sales tax evasion of more than Rs. 23 billion. Similarly, the cement and coal industries are evading taxes amounting to Rs. 18 billion, while the battery manufacturing sector is involved in tax evasion of Rs. 11 billion.
The finance minister also highlighted the beverage industry, where Rs. 15 billion in sales tax is being evaded. He firmly stated that the government will not tolerate false declarations by companies and has no choice but to enforce strict measures. He emphasized the need for a 13.5% increase in the Gross Tax Product (GTP) and tax-to-GDP ratio.
Minister Aurangzeb stressed the importance of curbing tax evasion, while the FBR Chairman also reiterated that no tax evader will be spared. All individuals, whether employees or taxpayers, involved in tax fraud will face legal action, and strict measures will be enforced against them.
