The Federal Board of Revenue (FBR) has uncovered large scale alleged tax evasion in the country’s medical sector, while nearly 60 percent of doctors registered in the tax system did not even file their income tax returns this year.
The FBR conducted scrutiny of doctors and institutions related to the diagnostic health sector across the country, and major discrepancies were found in their tax returns.
Under Section 175C of the Income Tax laws, the FBR has the authority to install Point of Sale (POS) systems in hospitals and private clinics, but the medical sector has been reluctant to comply with this process.
The matter has intensified and has now reached the Prime Minister’s House. However, the FBR, in its analysis, has made it clear that the alleged tax evasion is ongoing on a large scale and is increasing over time.
The scrutiny of the health and education sectors began when the FBR identified that these two sectors receive the highest funding.
Examination of income tax returns in the health sector has also revealed large scale alleged tax evasion.
