PM Shehbaz vows crackdown on tax evasion, urges expansion of tax base

Prime Minister Muhammad Shehbaz Sharif chaired a high-level review meeting on Monday to assess the Federal Board of Revenue’s (FBR) performance in expanding the tax base and increasing national revenue.

Commending the progress made towards achieving FBR’s revenue targets for the current fiscal year, the Prime Minister praised the efforts of the government’s economic team. He emphasized that individuals and sectors with the capacity to pay taxes but currently outside the tax net must be brought into it.

“Strict action must be taken against tax evaders, and government officials aiding them should also be held accountable,” the Prime Minister stated. He directed authorities to leverage modern technology to curb tax evasion and expand the tax base — one of the government’s top priorities. “By broadening the tax net, we aim to reduce the overall tax rate and ease the burden on the common citizen,” he added.

The Prime Minister instructed that digital monitoring systems for cement and other key sectors be fully implemented by June 2025. He also urged accelerated coordination with provincial governments to enhance tax revenue from the tobacco industry. Furthermore, he directed effective legal follow-up on all pending tax-related cases to ensure recovery of national funds.

Briefing the meeting, officials reported that the nationwide implementation of the track and trace system in cement plants has significantly boosted tax revenue. In the sugar industry alone, the system led to a 35% increase in tax collection from November 2024 to April 2025.

It was also noted that under the Prime Minister’s leadership and ongoing FBR reforms, Pakistan is on track to achieve a tax-to-GDP ratio of 10.6%.

The meeting was attended by Federal Ministers Azam Nazeer Tarar, Muhammad Aurangzeb, Ahsan Iqbal, Attaullah Tarar, FBR Chairman, and other senior officials.

Concluding the session, Prime Minister Shehbaz reaffirmed that with the grace of Allah, Pakistan’s economy is stabilizing and progressing. “National development requires every citizen to fulfill their responsibilities,” he said.

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