Govt declares ‘war on cash’ to rein in tax evasion

Finance Minis­ter Muhammad Aurangzeb on Sunday announced the government’s “war on cash” as part of a strategy to tap into over Rs9.3 trillion money in circulation and maximise revenue potential. Speaking at a press conference, Mr Aurangzeb stressed that the “short-term pain” of recent policy measures would remain in place for most citizens, even as top corporations begin to benefit from nascent macroeconomic improvements. At the conference, the finance minister was assisted by Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial, who tried to bust the “myth” around the much-talked-about Rs2.7tr taxes held up in litigation. Instead, he built up the narrative around a potential “Rs7.1tr tax gap” that has to be tapped through technology and massive auditing.