Tax evasion: PM Shehbaz orders action against individuals, sectors

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday ordered a sweeping crackdown on tax evasion, calling for strict accountability not only for individuals and sectors dodging taxes but also for government officials found facilitating them.

Chairing a high-level review meeting to assess the performance of the Federal Board of Revenue (FBR), the prime minister stressed that expanding the tax base is a top government priority.

He directed authorities to leverage modern technology to combat tax evasion and to expedite the implementation of digital monitoring systems, particularly in the cement sector, by June this year.

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He urged provincial governments to work in close coordination with federal authorities to boost tax revenue from the tobacco industry.

“Individuals and sectors capable of paying taxes but not doing so should be brought into the tax net,” said Sharif. “We must expand the tax net to ease the burden on the common man by lowering tax rates.”

Sharif also called for the swift resolution of pending tax-related cases to ensure the recovery of public funds, reaffirming his administration’s resolve to strengthen fiscal transparency and enforcement.

Praising the FBR’s ongoing reforms, Sharif commended the efforts of his economic team, expressing confidence that the revenue target – equivalent to 10.6 per cent of GDP – would be achieved this fiscal year.

The meeting was informed that the introduction of a track and trace system at cement plants has already yielded billions of rupees in additional tax revenue.

A similar system in the sugar sector resulted in a 35 per cent increase in revenue between November 2024 and April 2025.

Sharif described the economic outlook as stable and improving, attributing progress to recent policy measures.

“With the grace of Allah, the national economy is stable and moving toward progress,” he said, urging all stakeholders to fulfil their responsibilities for national development.

The meeting was attended by key federal ministers including Azam Nazeer Tarar, Muhammad Aurangzeb, Ahsan Iqbal, Attaullah Tarar, as well as FBR chairman and senior officials.

Copyright Business Recorder, 2025