One-Third of Pakistani Tax Filers Report Zero Income as FBR Launches Nationwide Audit Crackdown

Nearly one-third of Pakistan’s income tax filers—around 1.7 million out of 5.5 million—have declared zero taxable income in the current fiscal year, raising serious concerns about the credibility of filings and the growing challenge for the Federal Board of Revenue (FBR) to expand the country’s limited tax base.

Officials revealed that nearly one million taxpayers reported lower incomes this year compared to last year, prompting the FBR to prepare a large-scale audit operation to detect possible tax evasion. According to senior authorities, 977,000 returns showed reduced income levels, with some exporters even reporting losses. After the October 31 deadline, the FBR plans to issue formal tax notices to such individuals, urging them to revise their returns or face legal action.

Despite the spike in “nil” returns, the FBR says it will leverage the collected data to identify potential taxpayers and convert the findings into actual revenue. The board has already issued multiple reminders to filers, warning that it possesses financial transaction data capable of verifying income declarations.

To strengthen enforcement, the FBR has recruited 2,000 auditors who will conduct a comprehensive review of filings for the current fiscal year. The deadline extension to October 31 is expected to bring in about three million additional returns.

This upcoming audit campaign marks one of the FBR’s most aggressive drives in recent years, aimed at promoting compliance, curbing tax evasion, and increasing national revenue through stricter oversight and data-driven enforcement.