Faisalabad: Officials say recent reforms in the Federal Board of Revenue (FBR) are beginning to shift taxpayer behaviour, with stricter conditions on foreign travel and property transactions prompting non-filers to enter the tax net voluntarily.
Speaking at an awareness seminar at the Faisalabad Chamber of Commerce and Industry, Secretary Tax Education Muhammad Muti-ur-Rehman Mumtaz said the government has avoided direct punitive action against non-filers. Instead, it has introduced measures that make certain financial activities significantly more costly and difficult for those outside the tax system.
He said the reforms are part of a broader restructuring of the FBR initiated two years ago, following consultations with stakeholders to identify gaps and improve enforcement. As part of these changes, discretionary powers of officials have been reduced through digitalisation, while automated systems are being used to minimise human intervention and curb tax evasion.
According to the official, these measures have already shown results. Monitoring in key sectors, including sugar, has led to a significant increase in sales tax collection, while similar gains have been recorded in textiles, steel, beverages, and cement. He noted that the use of automated systems has improved transparency and reduced disputes over tax assessments.
Mumtaz said 1.7 million new taxpayers have been added to the tax base, while efforts are underway to expand documentation of the economy. He added that each citizen’s Computerised National Identity Card now effectively serves as a tax number, integrating financial records and helping authorities track transactions more efficiently.
Highlighting enforcement mechanisms, he said the Point of Sale system enables businesses to collect taxes on behalf of the government, with action taken against those who fail to comply. In addition, authorities have identified millions of potential taxpayers through utility data, with initial notices already issued to a portion of them.
Officials say the overall objective is to reduce tax evasion and gradually eliminate the distinction between filers and non-filers by encouraging voluntary compliance through policy measures and system improvements.
Business community representatives at the event stressed the need for continued coordination between government institutions and the private sector to strengthen the tax system and support sustainable economic growth.
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