Islamabad: The Federal Board of Revenue (FBR) has taken a significant step toward increasing tax compliance among Pakistan’s wealthiest individuals by acquiring data on 195,000 high-income non-filers from the National Database and Registration Authority (NADRA). This move comes as part of efforts to meet International Monetary Fund (IMF) demands for enhanced tax revenue and adherence to fiscal policies.

According to Zameen.Com, the data includes detailed information on bank accounts, luxury vehicle registrations, and properties owned by affluent Pakistanis who have not been filing their tax returns. This initiative is aimed at identifying and addressing gaps in tax collection from individuals who maintain substantial assets but have evaded their tax obligations.

FBR Chairman Rashid Mahmood Langrial highlighted that a very small percentage of Pakistan’s wealthiest are currently contributing to the tax base. This data exchange is expected to be a key tool in enforcing tax laws and extending the tax net to include those who have not been compliant. Prime Minister Shehbaz Sharif has directed the FBR to intensify efforts to enhance tax compliance, stressing the importance of broadening the tax base to ensure fiscal stability in the country.

The collaboration between the FBR and NADRA marks a shift towards a more systematic and data-driven approach to tax enforcement. The comprehensive data at the FBR’s disposal is set to facilitate immediate and rigorous actions against non-taxpayers in the ongoing fiscal quarter of 2024-25, potentially ushering in a new phase of financial scrutiny for luxury asset owners and high earners who have bypassed the tax system.