In Pakistan, tax collection and reporting mechanisms are complex and decentralised that has made income tax collection a very challenging job. The provinces collect GST on services that is not properly reported to the Federal Board of Revenue (FBR).
Under the VAT regime, the FBR that collects sales tax on goods can find out the annual turnover of a company or individual based on the sales tax deposited.
Source: www.thenews.com.pk
