Tax evaders

| 27th February, 2013
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THE region-wise breakdown of data on potential wealthy tax thieves makes interesting reading. The data, compiled by the Federal Board of Revenue with the help of the National Database and Registration Authority, shows, and predictably so, that Punjab is home to a majority of the suspected tax evaders followed by Sindh, Khyber Pakhtunkhwa, Balochistan, Azad Kashmir and Gilgit-Baltistan. While more than 85 per cent of them live in Punjab and Sindh alone, Karachi tops the list of the cities with over 725,000 wealthy people who should be but are not paying taxes. With a little less than 450,000 such people, Lahore stands not very far behind on the list. Other industrial cities of central Punjab — Faisalabad, Gujranwala, Sialkot, Rawalpindi, etc — can also boast of the heavy presence of potential tax thieves.

Though numerous factors, ranging from the concentration of population at one place or another to the level of economic development to the uneven distribution of industry and wealth, can easily be identified as reasons behind the number of tax evaders in a particular province or city, these explanations don’t really matter. What matters is action, or the lack of it, taken so far by the FBR to nab them and punish them for not paying taxes. The tax collectors are for the last several months in possession of the data listing owners of cars and large houses in upscale localities, who frequently travel abroad, maintain multiple bank accounts and pay hefty utility bills but who do not file tax returns. Most of them don’t even possess a national tax number let alone file returns. It is sad to note that the FBR is yet to initiate action against them in spite of the tall claims made by its senior officials, including its present chairman. Rather than moving against the identified potential tax evaders, the FBR authorities have wasted many months in pushing a controversial amnesty scheme, which is unlikely to be approved by the outgoing parliament because of widespread opposition. It is advisable for the FBR authorities to scrap its plans of facilitating powerful lobbies and move against tax evaders before it is too late.

COMMENTS

  1. We have watched oainfully rich people not paying taxes according to their share.The tax evasion legal or illegal has occured in the past and has been occuring now. We have been hearing a lot about this issue in the press, but no concrete action has been taken against tax evaders. There are loop holes in the tax laws that help them evading taxes altogether.
    A great loss of revenue has been occuring to the ex-chequer. We mmust plug in these sources to avoid further loss. THe rates of taxes must be lowered to facilitate tax0 payer’svburden. Didcover evaders and brithem in the tax net work.
    Tax evasion has eroded our economy too. We must act now or never, Thesituation is quiet dark. FBR must gear up its forces towards this objective.
    It is high time we intoduce Agricultural income tax to bring majority of non tax payers to the net.
    All these measures will go a long way bo correct the situation and improve collection of taxes also.
    Javaid Bashir
    Concernd Citizen
    Lahore

  2. The way to salvation is bring everyone in tax net. Or keep begging from abroad and keep bagging in few pockets.

  3. When this wealthy tax evaders are in your government or give financial support tho those standing for elections, how much power will your FBR have to nab them. Considering the fact that their jobs are in the hands of those elected? Thiefs having power will not allow the law to investigate them.May be your courts can.

    • Any so-called “independent” institution like the FBR must act according to law instead of getting pressured or led by govt. Moreover, like most other institutions, the FBR is also infected with corruption which makes it difficult to collect taxes from all rich.

  4. One has move against all of these sucking parasites on a warfooting. The Apex Court with a suo motu motion should help this operation in an accountable manner.