PM Shehbaz orders crackdown on tax evasion, under-invoicing

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday ordered a tougher crackdown on tax evasion, under-invoicing, and other financial violations, and called for strict action against those selling untaxed or illegal cigarettes.

Chairing a high-level meeting to assess the performance of the Federal Board of Revenue (FBR), he underscored the need to remove systemic obstacles in tax collection and reform outdated mechanisms.

According to a press release issued by the Prime Minister’s Office, the session focused on strengthening the tax framework and widening the revenue base.

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During the discussion, the prime minister expressed his full support for proposed amendments to the Income Tax Ordinance and the Federal Excise Act, stating that these changes are intended to ease the process of tax recovery while ensuring legitimate taxpayers are not unduly burdened.

“These amendments aim to protect honest taxpayers and prevent unnecessary harassment of businesses and companies by FBR officials,” the prime minister said, adding that the reforms would also “simplify the tax payment process and help expand the tax net, ultimately reducing the burden on the common citizen.”

Officials briefed the premier on the steps currently being taken to combat tax evasion in critical sectors. Among the tools being rolled out are digital monitoring systems, such as the Track and Trace mechanism, to improve transparency and enhance enforcement.

The meeting was informed that significant progress had been made in identifying irregularities within industries such as tobacco, cement, sugar, poultry, and beverages. Video monitoring has played a key role in uncovering violations, and the FBR is now establishing a dedicated monitoring framework for the poultry sector.

Copyright Business Recorder, 2025