The federal government has decided to increase fines in the upcoming budget in order to curb tax evasion among shopkeepers and businesses, Express News reported.
During a meeting of the Senate Standing Committee on Finance on Wednesday, Federal Board of Revenue (FBR) officials briefed members that fines for shopkeepers who use to evade taxes, will be raised from Rs0.5 million to Rs5 million while also proposing a reward scheme for those who report fake receipts used to avoid taxes.
According to the FBR, the upcoming budget will impose heavier penalties on retailers involved in tax evasion as the government aims to expand the number of retailers registered at points of sale, targeting seven million retailers.
The FBR also proposed a reward scheme to incentivise reporting of fake receipts used to avoid tax payments, with informants eligible for cash prizes up to Rs10,000.
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Officials said monitoring will be strengthened by deploying cameras and additional staff at retail points. The upcoming budget will also focus on sectors such as poultry, tobacco, beverages, and sugar mills, where enhanced oversight has already led to increased tax collection.
Meanwhile, Senate Finance Committee Chairman Saleem Mandviwala expressed concern over long delays in sales tax refunds, which exporters claim can take months instead of days.
FBR officials said they are prioritising refunds for key export sectors including textiles, sports goods, carpets, leather, and surgical products, promising faster processing.
To combat tax evasion, authorities said daily business closures and fines are being enforced in major cities including Lahore, Karachi, and Islamabad, with plans to raise fines and extend measures nationwide.
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A media campaign against fake receipts and tax evasion will be launched soon, with plans to involve university students to help monitor thousands of shops across the country, they added.
The committee was informed that new higher fines could come into effect from July 2025. Officials said the current lower penalties have weakened enforcement efforts and the government will seek parliamentary approval for the increases.
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