The FBR has developed a new compliance and enforcement strategy that mainly focuses on punitive measures against tax evaders and cheats in order to fulfill the tax objective. The government anticipates that this will force current filers to stop underreporting their taxable incomes and encourage non-filers to register as taxpayers in order to avoid having their ability to utilize cash for financial instruments, real estate, and travel restricted.
The new approach seems to have the support of the political and financial elite because it promises to close the Rs7.1tr tax deficit, which is a reflection of tax evasion and corruption, in the near future without requiring laborious reforms.
