FBR Initiatives Target Tax Compliance and Fraud Prevention

The Federal Board of Revenue (FBR) is set to raise the valuation of immovable properties in major cities from 75% to 90% of the market rate starting in July. This move aims to boost tax revenues by ensuring that property taxes are more accurately assessed. The adjustment in property valuation rates is part of the upcoming 2024-25 budget approval.

Efforts to improve tax compliance have shown some success, with 1.5 million new tax filers added in the previous fiscal year. However, concerns persist about the need for additional measures to increase tax filing numbers, as highlighted by Senator Anusha Rahman.

Moreover, the FBR has uncovered a significant tax fraud scheme involving fake/flying invoices, totaling Rs 756 billion. This discovery has led to the arrest of 70-80 individuals involved in these fraudulent activities. The steel sector has been identified as a major contributor to the issuance of fake invoices, resulting in an annual loss of Rs 60-70 billion for the national treasury.

The FBR's initiatives to enhance tax collection and combat tax fraud are crucial steps towards ensuring a fair and transparent tax system. By increasing property valuation rates and cracking down on fraudulent practices, the FBR aims to strengthen the country's fiscal health and promote greater compliance with tax laws.