Islamabad: The Federal Board of Revenue (FBR) has released its ‘Tax Gap Analysis 2022’ report, identifying a PKR 28 billion tax gap for income tax on salaried income, as news sources reported on January 11.
Read:FBR to publish names of high-value tax defaulters Similarly, for the non-salaried class, the tax gap has reached PKR 755 billion, which is higher than the tax gap estimated for the years 2020–21. The analysis was published by the tax authority following its Household Integrated Economic Survey (HIES) at the national level, which collects information on the income and expenditure of individuals.
As per the survey, the corporate tax gap was estimated to be approximately PKR 395 billion in 2020–21. Similarly, the compliance gap in income tax was PKR 730 billion, which is 31% of the potential collectable income tax.
It is important to note that the FBR is expected to collect PKR 7.4 trillion in taxes until June 2023 to fulfil the IMF agreement. However, FBR has revised its tax collection target downward and is now expected to collect PKR 7.3 trillion, just shy of PKR 170 billion. As per FBR, the tax collection has decreased owing to the flood situation in the country and the import ban.
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