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In a major move to expand the tax net, the Federal Board of Revenue (FBR) has started a systematic audit of expensive doctors, beauty salons and cosmetics businesses in three major cities of the country.
According to sources, in the initial phase, notices are being sent to doctors in Karachi, Lahore and Islamabad who have been charging high fees for a long time but whose income records have been found suspicious. This phase includes checking the income of 250 high-profile doctors, including 100 from Karachi and Lahore and 50 from Islamabad.
Sources say that in view of the increasing possibilities of tax evasion in the beauty industry and cosmetic market, the FBR has also included big beauty parlours and businesses selling expensive cosmetics in the audit radar.
The FBR has hired 600 private auditors for this massive audit campaign, while another 200 auditors are expected to be recruited in the next few days. Officials say the target is 2,000 private auditors to keep the pace of audits fast.
According to tax experts, the move will tighten the noose around unregistered or low-tax paying expensive professionals and businesses in big cities.
Tax consultant Fahad Mahmood said
“The involvement of private auditors will increase the capacity of the FBR, but the real success will be when the audit is transparent, fast and free from political pressure.”
Sources say the FBR has issued strict instructions to all private auditors to keep taxpayer information completely confidential.
