Pakistan, Nov. 29 -- Tax experts have warned that the Federal Board of Revenue's (FBR) digitalisation efforts will have limited impact without targeting non-filers. Currently, Pakistan's tax-to-GDP ratio stands at 10-11%, and FBR aims to raise it to 18% by 2027-28. Analysts say increasing return filings alone will not significantly improve revenue.

Karachi Tax Bar Association vice president Faiq Raza said about 50% of filers only submit returns to avoid advance tax, contributing nothing to revenue. He stressed that expanding the tax base through enforcement is urgently needed. Raza added that digitalisation should be accompanied by upgrading FBR systems to automatically access taxpayer data.

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