FBR to move against private clinics, hospitals over tax evasion, underreporting

As per data, 31,524 doctors declared zero income but collectively filed tax refund claims amounting to Rs1.3b

The Federal Board of Revenue has decided to tighten the noose around private-practice doctors, clinics and private hospitals allegedly involved in tax evasion amounting to billions of rupees.

The decision has been taken in light of the latest statistics obtained during FBR’s data analysis, which revealed large-scale alleged tax evasion by doctors across the country. Despite having taxable income, more than 73,000 registered doctors were found to have not filed income tax returns.

According to FBR officials, the latest data shows that there are 130,243 registered doctors nationwide. However, during the current year, only 56,287 registered doctors filed income tax returns, while over 73,000 medical professionals did not submit any returns at all—despite being engaged in one of the country’s highest-earning professions.

The findings highlight stark discrepancies between the visible scale of private medical practices and the income declared to the FBR. The data shows that in 2025, as many as 31,870 doctors declared zero income from private practice, while 307 doctors reported losses, even though their clinics in major cities remain consistently crowded with patients. Only 24,137 doctors declared business income.

Even among those doctors who do file tax returns, the tax paid is disproportionately low compared to their potential earnings. Some 17,442 doctors earning more than Rs1 million annually paid an average of only Rs1,894 per day in tax.
Meanwhile, 10,922 doctors with annual incomes between Rs1 million and Rs5 million paid just Rs1,094 per day. Around 3,312 doctors earning between Rs5 million and Rs10 million annually paid an average daily tax of Rs1,594.

In contrast, many doctors reportedly charge fees ranging from Rs2,000 to Rs10,000 per patient, yet fail to declare even the equivalent of a single patient’s daily fee as tax. The highest-earning group—3,327 doctors with annual incomes exceeding Rs10 million—paid only about Rs5,500 per day in tax.

Additionally, 38,761 doctors declared incomes of less than Rs1 million and paid an average daily tax of only Rs791. Alarmingly, 31,524 doctors who declared zero income collectively filed tax refund claims amounting to Rs1.3 billion.

The figures sharply contradict ground realities, where private clinics across the country are packed with patients every evening and consultation fees remain significantly high.

In comparison, a Grade-17 or Grade-18 government officer pays far more tax on a monthly basis than many doctors pay over an entire quarter, despite government employees having little to no opportunity to conceal income.

The situation raises a fundamental question: can the country rely on taxes from sectors whose incomes cannot be concealed, while high-income professions either underreport or completely hide their earnings?

The growing compliance gap underscores the urgent need for effective enforcement measures to restore fairness in the tax system. Compliance among high-income professions, the FBR believes, is no longer optional but has become essential for national economic stability.