IF a national survey is conducted to determine the topic discussed the most over the last several years in print and electronic media, in government and public meetings, in dialogues between foreign lenders and the government, and across many other forums, it would definitely be ‘tax broadening measures’.

If another survey is done to identify an issue where no action has ever been taken in earnest or in a well thought-out serious manner, that issue would once again be ‘tax broadening measures’.

In the above two surveys, if another question is added about how tax collections have increased by significant numbers if no action has been taken to broaden the tax base, the response would be ‘by increasing taxes on the already compliant tax sector’, including the salaried class and the documented corporate sector.

In my opinion, the tax base can be broadened easily by some relatively simple actions, which should be implemented strictly without any exemption.

For instance, it should be made manda-tory for every person to file a tax return, including the asset statement and re- conciliation from one year to another, if there has been transactions in their bank accounts totalling Rs2 million in any fiscal year. Credit card transactions would also be automatically covered as all such transactions are routed through banks.

It should be applicable on purchasers of real estate properties, vehicles valuing more than Rs2 million, and those who have travelled abroad.

In order to implement the above tax filing requirement, relevant laws should be passed requiring banks and other financial institutions, property registrars, motor vehicle companies (or car distri-butors) and travel agents to provide the FBR with details of the above transactions every year.

The FBR should discretely review these details and issue notices to all such persons who have not filed tax returns. The FBR should not take any action where persons falling in the above categories are not required to file tax returns, including the non-residents, and persons deriving their income from non-taxable sources.

Moin Mohajir
Karachi

Published in Dawn, July 4th, 2026