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Silver City

FBR Assures IMF of Crackdown on Tax Evasion in Retail, Real Estate, Tobacco Sectors

Enhanced Tax Compliance Measures

  • High-Risk Taxpayer Identification: The Federal Board of Revenue (FBR) will utilize the CRM system to identify high-risk taxpayers in the retail, real estate, and corporate sectors to reduce tax evasion.
  • Increased Auditing Capacity: The FBR plans to augment the number of auditors to strengthen enforcement efforts.
  • Targeted Notification Strategies: The government will maintain mass nudging/notification strategies to improve compliance.

Retail and Import Monitoring

  • Point-of-Sale System Integration: The government will expand retailer participation in the integrated Point-of-Sale (POS) system.
  • Import Declaration Oversight: Close monitoring of import declarations, focusing on importers with irregular patterns.
  • Anti-Smuggling Initiatives: Continued efforts to combat smuggling to support revenue mobilization.

Combating Tax Evasion in the Tobacco Sector

  • Audits of Acetate Tow Imports: Thorough audits to address misclassification of acetate tow under incorrect HS codes.
  • Bonded Warehouse Mandate: Mandatory use of bonded warehouses for acetate tow imports.
  • Restricted Import Access: Limiting acetate tow imports to registered tobacco and filter-producing companies.
  • Transit Import Ban: Prohibition of acetate tow transit imports to Afghanistan.

Track-and-Trace System Enhancements

  • System Implementation: Continued rollout of the track-and-trace system to monitor production.
  • Anti-Smuggling Campaigns: Escalation of anti-smuggling efforts, with reinforced checkpoint operations, particularly in northwestern regions.

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