FBR seeks more staff, resources to bridge Rs7trl tax gap

Business Feb, 5 2025
FBR seeks more staff, resources to bridge Rs7trl tax gap
  • 81
  • 0

ISLAMABAD: The Federal Board of Revenue (FBR) has called for additional staff and logistical resources to tackle Pakistan's massive Rs7 trillion tax gap.

According to FBR officials, a crucial part of the strategy is to enhance field operations and expand informant networks to reduce tax evasion. Currently, the FBR faces major challenges in overseeing tax activities across the country due to limited resources and manpower. The tax authority operates with only 25 offices nationwide, which is deemed insufficient for effective monitoring. Additionally, the FBR receives just Rs1 for every Rs200 of income, highlighting the need for more financial resources to carry out its functions efficiently. In comparison, India allocates 1.5% of its total revenue for tax operations, whereas Pakistan's expenditure is only 0.44%. This disparity underscores the significant resource gap. Furthermore, provincial departments are receiving salaries and benefits that are 20 times higher than those of the FBR, further straining its capacity to manage the tax system effectively.

To monitor key sectors such as sugar, cement, tobacco, and fertilizers, the FBR emphasizes the necessity of more resources, including vehicles. In the 2022-23 fiscal year, the Punjab Revenue Authority set a tax collection target of Rs240 billion, which also illustrates the need for robust tax operations and resources. The FBR also faced severe criticism earlier for planning to purchase 1,010 new cars, each with a 1200cc engine, for officers at a cost of Rs3 billion. A Senate panel raised concerns about the lack of competition in the bidding process, with some claiming that the contract was awarded directly to Honda Atlas despite a lower bid from Indus Motors by Rs200,000. These issues highlight the ongoing debate over how best to allocate resources within the FBR.

NC Big Stories

Death of Pakistanis in boat tragedies

In recent yeas, varoius groups of human smugglers emerged who started sending innocent people abroad through illegal and inhumane methods, this process is still going on.  In recent years, hundreds of Pakistanis who traveled through illegal rou...

Azerbaijan-Pakistan chamber of commerce inaugurated to boost bilateral trade

ISLAMABAD: Pakistan achieved a significant milestone in fostering bilateral trade relations with Azerbaijan as the Azerbaijan-Pakistan Chamber of Commerce and Industry was officially inaugurated in Islamabad. The ceremony was graced by Federal Minist...

IMF applauds Pakistan's economic efforts ahead of review: Aurangzeb

ISLAMABAD: Finance Minister Muhammad Aurangzeb shared on Wednesday that the government has received "very positive" feedback from the International Monetary Fund (IMF) regarding Pakistan's macroeconomic stability and its reform efforts. Speaking at...

PM Shehbaz, IMF's Georgieva hold talks on ongoing program

DUBAI: In a significant development on the sidelines of the World Government Summit (WGS) 2025, Prime Minister Shehbaz Sharif engaged in a crucial meeting with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). The talk...

More like this
Related

Azerbaijan-Pakistan chamber of commerce inaugurated to boost bilateral trade

ISLAMABAD: Pakistan achieved a significant milestone in fostering bilateral trade relations with Azerbaijan as the Azerbaijan-Pakistan Chamber of Commerce and Industry was officially inaugurated in Islamabad. The ceremony was graced by Federal Minist...

IMF applauds Pakistan's economic efforts ahead of review: Aurangzeb

ISLAMABAD: Finance Minister Muhammad Aurangzeb shared on Wednesday that the government has received "very positive" feedback from the International Monetary Fund (IMF) regarding Pakistan's macroeconomic stability and its reform efforts. Speaking at...

PM Shehbaz, IMF's Georgieva hold talks on ongoing program

DUBAI: In a significant development on the sidelines of the World Government Summit (WGS) 2025, Prime Minister Shehbaz Sharif engaged in a crucial meeting with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). The talk...

Rana Tanveer chairs PSMA meeting on sugar distribution, pricing

ISLAMABAD: Federal Minister for Industries and Production, Rana Tanveer Hussain, chaired a significant meeting of the Pakistan Sugar Manufacturers Association (PSMA) on Tuesday, focusing on crucial decisions regarding sugar pricing and distribution a...
Need Help? Chat with us