Pakistan loses billions due to tax evasion: PM Imran

ISLAMABAD: Prime Minister Imran Khan has said that Pakistan was losing billions of rupees annually due to tax evasion of cigarette companies and other large sectors.

“Only two companies pay 98% tax in the cigarette industry. No tax is collected from the remaining 40 per cent cigarettes being sold in the country,” PM Khan said while chairing a meeting of the federal cabinet.

“Approximately 40 per cent of cigarettes are sold [without paying taxes] which causes the country to suffer. For the past 15 years, the FBR has been trying to introduce the system, to bring in automation but it is sabotaged each and every time,” the prime minister said.

“We cannot stop the tax evasion unless track and trace system is launched,” he said.

The PM said that the government is forced to impose indirect taxes because of its failure to stop massive tax evasion of large sectors. The indirect taxes, he said, result in price hike and inflation.

“We were given assurance by the FBR that the track and trace system would be in place from June this year. We have now learned that the Sindh High Court has issued a stay order.”

“I want to tell this to my cabinet members so that you have any idea of the massive scale of tax evasion being done in the country because we don’t have this automation, which is not being allowed.”

The PM said that FBR had imposed a tax of Rs 400 billion on the sugar industry alone during the past five years.

In the end, the PM directed Federal Law Minister Farogh Naseem to approach the Sindh High Court to withdraw this stay order. “Please tell the court that this is not one’s personal matter. This is causing huge financial losses to the country.”