These measures, proposed by the FBR’s Member Inland Revenue (Operations), aim to ensure accurate and complete tax filings across the board, including Tier-1 retailers and manufacturers.

The proposed penalties include a hefty fine of Rs. 1,000,000 for each incorrect or incomplete return filed and disconnection of utilities for those who file inaccurate returns.

The penalties will also include freezing of bank accounts for those who file inaccurate returns and a ban on purchasing property or vehicles for those who file inaccurate returns.

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The FBR hopes to achieve this by increased transparency through third-party monitoring as well as AI and ML-assisted audits to immediately identify and address incorrect or incomplete returns.

The FBR believes these measures will strengthen its tax enforcement regime and help achieve its fiscal targets. The FBR is open to suggestions that could enhance these policy measures for maximum impact.