FBR Chairman vows to collect Rs13,500 billion, slams tax evading culture

ISLAMABAD: Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue (FBR), has expressed his ambition to collect Rs13,500 billion in tax revenue this year, despite experiencing a significant shortfall in the first half of the fiscal year. According to The News, the FBR reported a Rs386 billion deficit from July to December, with revenue reaching Rs5,623 billion, falling short of the target of Rs6,009 billion.

The International Monetary Fund (IMF) had set an indicative revenue collection goal of Rs6,009 billion by the end of December 2024, but the FBR’s net collection in the first six months did not meet this benchmark. Recently, Langrial criticised the widespread culture of tax evasion in the country, noting that those who often propose solutions for the system tend to be the same individuals avoiding tax payments.

He pointed out that individuals who are supposed to pay taxes are not fulfilling their obligations adequately, highlighting issues with both taxpayers and tax collectors. Langrial was of the view that the current tax rates in Pakistan were incorrect and required adjustment. “The tax system is meant to bring the top 5% of the affluent population into the tax fold,” he stated, reiterating his commitment to meeting the revenue goal.

In response to inquiries, Langrial remarked that Pakistan did not belong to the category of overtaxed nations. He observed that taxpayers were neither contributing fully in taxes nor receiving adequate services in return. Moreover, he said while the salaried class was included in the tax system, the wealthy often did not pay their due share.

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Langrial said that the government recognised the necessity of lowering tax rates on specific items, as well as announced plans for a new law aimed at complicating shopping for individuals who failed to file their tax returns.

“Over 400,000 retailers have been brought into the tax net this year, although many have yet to report their monthly earnings,” he said, underscoring the urgency of curbing the smuggling of petroleum products.