The Federal Board of Revenue (FBR) has stepped up its enforcement drive against tax evasion in the private healthcare sector by deploying Inland Revenue Service (IRS) officers directly at the premises of commercial hospitals and clinics across the country.
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Senior tax officials said the move reflects a shift towards on-site monitoring aimed at curbing underreporting of income in one of Pakistan’s most lucrative professional sectors. The initiative gained momentum following poor tax compliance by doctors during the tax year 2025.
According to official FBR figures, a large segment of the medical profession remains outside the tax net. Of the 319,572 registered doctors nationwide, only 130,243 are registered on income tax rolls, representing just over 40 per cent. Among those registered, only 56,267 filed income tax returns for TY2025, making the sector one of the least compliant within the tax system.
Tax authorities said concerns were further heightened by income declarations showing widespread underreporting. Even among doctors who filed returns, many reported very low or zero income, raising questions about transparency and enforcement in the sector.
A senior tax official told Dawn that IRS officers have been posted at 50 commercial hospitals under Section 175-C of the Income Tax Ordinance. Their role includes monitoring the provision of medical services and the collection of receipts in real time to identify discrepancies between actual revenue and declared income.
The official said private notices are being issued to non-compliant doctors to encourage voluntary compliance, adding that some improvement has already been observed following these notices.
Data analysis showed that of the doctors who declared income, more than 60 per cent reported annual earnings below Rs2 million. Meanwhile, 7,583 doctors declared zero income for the year. At the higher end, only 1,050 doctors reported annual income exceeding Rs10 million.
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The FBR said the figures highlight two major gaps: one between registered doctors and return filers, and another between filers and the income levels declared. Officials said the enforcement drive would continue as part of broader efforts to widen the tax base and improve compliance in high-earning sectors.