THE Federal Board of Revenue (FBR) has launched a nationwide operation against jewellers operating outside the tax net or paying taxes below their actual capacity.
FBR officials said notices have been issued to jewellers in Islamabad, Rawalpindi, Faisalabad and Multan. Out of 57,000 jewellers across the country, only 20,000 are registered, and of these, merely 10,000 have filed their tax returns.
The crackdown comes as part of the FBR’s ongoing efforts to broaden the tax base, curb evasion and strengthen fiscal compliance across all business sectors. It was reported a few days back that the FBR has decided to take action against wealthy individuals who pay little tax or are outside the tax net but flaunt their wealth on social media. Its social media team has collected data on 100,000 wealthy individuals living a lavish lifestyle. The income and expenses of those showcasing luxurious bungalows, flashy cars and jewelry are being reviewed. These are steps in the right direction as there was no room to burden further those who are already paying their share of taxes and allow those earning millions to go scot-free. We have been emphasizing in these columns that there would be no need to increase the tax rate or impose additional taxes if genuine focus is laid on enforcement. Apart from jewelers, there are eateries, clinics and shops minting money but paying nothing to the national kitty. However, there are big question marks about the ability of the FBR to make evaders pay in view of such abortive attempts in the past.
