An important report reveals huge tax Evasion where 5,800 Billion ripples acrossultiple sectors Revealed in Recent Reports. According to recent reports, a total of 5800 rupees worth of tax evasion has been discovered in various sectors across the country.
To tackle this, the Federal Board of Revenue (FBR) has introduced a comprehensive strategy to prevent tax evasion. FBR officials state that approximately 2900 billion rupees are being stolen every year in sales tax alone. Similarly, tax evasion of 996 billion rupees has been identified in the petroleum sector due to smuggling.
A revenue gap of 888 billion has been recorded in the retail sector and 562 billion in the transport sector. The authorities further reveal that the private power generation companies have evaded tax collection of 498 billion rupees, while 342 billion rupees have been lost in the export sector.
Additionally, the real estate sector receives 148 billion rupees less in taxes annually, and the total tax gap in other sectors is estimated to be more than 1600 billion. On the other hand, while the federal and provincial expenditure is equal to 19% of the GDP, the tax collection is only 11.4%. To address this issue, the FBR has decided to formulate a comprehensive strategy that will accelerate revenue generation and promote automation in the tax collection process
