In a shocking revelation, the wealthy elites and retailers have been exposed for evading a staggering 175 billion PKR in taxes, a massive blow to the nation’s economy. During the previous fiscal year, the affluent class managed to escape paying 264.3 billion PKR in taxes, leaving the burden on the middle and lower-income groups.
The Federal Board of Revenue (FBR) reported that the tax evasion rate for the wealthy class was an astounding 35%, resulting in a shortfall of 75 billion PKR in tax revenues. Despite their considerable earnings, entrepreneurs and retailers connived to sidestep their financial responsibilities, contributing a mere 89.5 billion PKR in income taxes last year.
Surprisingly, even individuals earning a substantial 27.7 billion PKR contributed a meager 74 billion PKR in taxes. Their share in the tax pool was 17.4% higher compared to the previous year, but in terms of actual income, it showed a dismal increase.
Startlingly, the data revealed that the affluent class pays a paltry 1% of their total receipts in income tax, while retailers and wholesalers, making up almost 19% of the economy, contributed a mere 0.4% to the overall income tax collection.
Moreover, the tax evasion saga continues as contractors and service providers managed to dodge taxes with a 3% increase, totaling a massive 391 billion PKR. In contrast, interest income tax collection witnessed a staggering 106% surge, reaching 320 billion PKR. Income earners, despite contributing 290 billion PKR in taxes, were overshadowed by the third-largest chunk consumed by withholding taxes.
The revelation of these shocking figures demands immediate action from the government to address this grave issue and ensure everyone contributes their fair share to the country’s development.