The Federal Board of Revenue (FBR) has sought more staff and logistical support to tackle Pakistan’s Rs7 trillion tax gap, citing insufficient monitoring and operational challenges across the country, according to ARY News.
Key challenges highlighted by FBR officials:
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- The lack of adequate field offices, with only 25 offices nationwide, making tax enforcement difficult.
- Limited financial resources, as the FBR receives only Rs1 for every Rs200 of income for tax operations.
- Comparisons with India, where 1.5% of total revenue is allocated for tax operations, while Pakistan only spends 0.44%.
- Lower salaries and benefits for FBR staff compared to provincial department employees, who reportedly earn 20 times more.
FBR’s strategy to curb tax evasion:
- Enhancing field operations and informant networks to detect tax fraud.
- Monitoring key industries such as sugar, cement, tobacco, and fertilizers more effectively.
- Requesting new vehicles and additional resources to strengthen enforcement efforts.
Meanwhile, the FBR’s decision to purchase 1,010 new 1200cc vehicles for officers at a cost of Rs3 billion has sparked criticism. The Senate Standing Committee on Finance has raised concerns over the direct awarding of the contract to Honda Atlas, despite Indus Motors offering a lower bid by Rs200,000 per vehicle.
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