Govt declares 'war on cash' against tax evaders

While vowing to reach the targeted revenue of Rs9.3 trillion, the government has announced a "war on cash" to maximise the revenue potential.

Addressing a press conference, Finance Minister Muhammad Aurangzeb said the authorities have a plan to enforce stricter policies against non-filers and take measures to cut the expenditures of the government by abolishing the six ministries.

“The decision of abolishing six ministries, including the Ministry of Capital Administration and Development Division, will proceed soon, while two ministries will be merged under the austerity campaign,” he said.

The finance minister also noted that the number of tax filers doubled to 3.2 million compared to 1.6 million last year.

He added that out of 300,000 businessmen, 25% of wholesalers and just 14% of retailers have registered themselves for sales tax.

"We have extensive data to bring them into the tax net,” said Mr Aurangzeb.

The minister had warned that non-filers would face restrictions, including being unable to purchase vehicles or properties.

The non-filers can also face difficulties with transactions and money withdrawal from their bank accounts.

FinMin declared the government’s policies as “short-term pain” to tap into over Rs9.3 trillion in circulation and maximise revenue potential.

He conceded that the tax return forms were too complex, which could not be solved without the help of an accountant and legal experts, and "it is one of the challenges that would be addressed in the next budget'.

“We must declare war on cash if we aspire to join the G20."

In an effort to identify evaders, the government will digitalise the system, which will help to monitor non-filers transactions, income, and individual complaints.