Islamabad, Sep 30 (Reporter) Pakistan Finance Minister Muhammad Aurangzeb announced the government's "war on cash" strategy to maximise revenue potential by tapping into over Rs 9.3 trillion in circulation, media reports said. Speaking at a press conference on Sunday, 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 Rs 2.7 trillion taxes held up in litigation. Instead, he built up the narrative around a potential “Rs7.1 trillion tax gap” that has to be tapped through technology and massive auditing, Pakistani media outlet Dawn, reported. However, both Aurangzeb and Langrial conceded that tax return forms were too complex to be handled by any taxpayer without the help of accounting and legal experts and was one of the challenges to be addressed in the next budget. The FBR chief said the deadline for submission of tax returns would not be extended beyond September 30. There were, however, strong reports that an extension would be allowed for a few days after the expiry of the last date. The finance minister said non-filers and under-filers were evading taxes of around Rs 1.3 trillion at the individual level. “We must declare war on cash if we aspire to join the G20,” he said, stressing that it could only be possible when transactions are documented. Pakistan's economy could be worth over $700 billion, double the current estimate of $325 billion, leading to over Rs 7 trillion in annual tax evasion. “We will ensure this documentation as we go forward,” he said. According to reports, these tax evaders would not be able to purchase vehicles and properties, invest in mutual funds, open bank accounts, withdraw cash, and even face problems in handling deposits. He said that as of September 29, tax filings had more than doubled to 3.2 million compared to 1.6 million the previous year, with over 723,000 new filers compared to 300,000 last year. This proves that we are walking the talk. Out of 300,000 manufacturers, only 14 percent were registered for GST, while only 25 percent of 300,000 wholesalers were registered, he said. To address this, the government plans to register these businesses and implement a “Know Your Customer” (KYC) scheme similar to the banking sector, ensuring manufacturers only supply to registered wholesalers. “We will use data and get algorithms connected to the tax-to-GDP ratio,” he said, adding that non-registrations would lead to blocked utilities, attaching properties, and sealing premises. The FBR chief revealed a revenue gap of Rs 7.1 trillion this year, which includes Rs 3.4 trillion in GST, Rs 2 trillion in income tax, and over Rs 700 billion in smuggling losses, the report said. He revealed that despite the withdrawal of exemptions, inclusion of additional items, and an increase in the GST rate from 16 pc to 18 pc, total collections on account of GST remained unchanged at Rs 3.1 trillion in 2008, 2016, and 2024...////...