AGP: Tax Filers Surge, Revenue Grows Less

Islamabad, June 30, 2025 — The Auditor General of Pakistan’s (AGP) report reveals a stark disconnect: a 76% surge in income tax return filers to 5.215 million in tax year 2024 from 2.959 million in 2023, yet tax revenue grew only 30%, while the tax-to-GDP ratio plummeted to 8.7% from 10.6% in 2016-17. The AGP blames this gap on filers exploiting reduced tax rates on property and vehicle sales for procedural benefits, not meaningful tax payments.

The Federal Board of Revenue’s (FBR) Broadening of Tax Base (BTB) wing evaluation shows new filers joining for convenience, not compliance. Despite vast third-party data, high-income individuals—with industrial electricity/gas connections, luxury vehicles, and frequent foreign travel—file nil returns, evading taxes. Unresolved issues from the 2016-17 audit persist: 1,807 unregistered industrial electricity users, 702 non-filers with such connections, 992 gas connection holders, and 744 owners of vehicles above 1500cc remain unregistered or non-compliant.

The FBR claims BTB progress, but the audit finds no verifiable results, with the Departmental Accounts Committee (DAC) awaiting a detailed update by January 2025—unsubmitted before the report’s close. AGP recommendations include mandatory registration using utility, vehicle, and travel data, auditor access to portals, and stronger collaboration with Nadra, registrars, and withholding agents to enhance compliance.

Web context highlights Pakistan’s tax evasion crisis (e.g., 70% informal economy, web ID: 0), while posts found on X show frustration—some demand action, others question FBR efficacy. Critically, the narrative of “tax base expansion” may mask systemic failures—web data points to enforcement gaps, and X sentiment suggests distrust in reform impact, hinting at persistent challenges.