The Federal Board of Revenue (FBR), in a serious enforcement move to broaden the tax base, has identified 700,000 "most rich persons," living in posh localities and also enjoying the luxury of not paying due taxes.
Sources told Business Recorder here on Tuesday that the FBR Member, Enforcement and Accounting, compiled a list of 700,000 rich persons on the basis of data obtained from National and Database Registration Authority (Nadra) to bring these people into the tax net.
The data of Nadra has disclosed the computerised national identity card numbers (CNICs) and permanent addresses of these rich non-filers living in posh areas, giving FBR an opportunity to broaden its tax base.
For example, people living in Defence Housing Authorities in Karachi, Lahore, Islamabad, Clifton Karachi, Gulburg Lahore, Bharia Town, and top sectors in the Federal capital like diplomatic enclave, E-7 and F-10 must be having income more than the minimum tax slab, taking into account their lavish lifestyle, but they did not bother to consider their liabilities in the form of tax, which is badly widening the tax-to-GDP ratio gulf.
The sources said that the FBR was now focusing on the elite class to improve the country's resource base through revenue collection. "This exercise is first of its kind to register 'most rich people' of Pakistan with the Income Tax Department on the basis of authentic data depending on their lifestyle," said the sources.
The government has assured full political backing to the FBR to bring the elite evaders into the tax net. The board's directive to the field formations said: "There are 700,000 cases with Nadra, belonging to posh localities all over the country, which Pakistan Revenue Automation Limited (PRAL) will have to check whether those cases are on National Tax Number (NTN) Master Index or not. Those outside the ambit of tax net will be put on the roll immediately," the FBR said.
According to sources, the FBR has directed the Directorate Generals of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) that maximum efforts to be made to help the broadening the tax-base. In this regard, the services of PRAL would be optimally utilised to broaden the tax-base.