Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has said that traders whose visible lifestyle does not align with their declared income may be selected for tax audits, as authorities step up efforts to widen the tax net and improve compliance.

Speaking to a private TV channel, he dismissed the notion that traders can settle their tax obligations by paying a fixed Rs. 25,000, stressing that tax liability is determined by actual business activity, income level, and applicable tax laws.

He said individuals whose spending patterns and standard of living are significantly higher than their declared earnings could come under audit scrutiny, as such discrepancies raise concerns about the accuracy of tax returns.

Langrial added that where business turnover is higher, taxation will be applied according to the prescribed rates, regardless of any minimum tax arrangements. He noted that the government is increasingly using data-driven systems to detect gaps between reported income and actual economic activity.

He further stated that around 70 million people are not paying their fair share of taxes, underscoring the scale of Pakistan’s compliance gap and the continued burden on a limited taxpayer base.

On corporate taxation, the FBR chairman acknowledged that the super tax is not an ideal long-term measure. However, he said it was introduced in response to pressing fiscal and economic conditions at the time.