ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has stated that while the tax collection target for the current fiscal year is challenging, it remains achievable. His remarks come amidst ongoing efforts to expand the tax net and improve compliance across the country.
Addressing Under-Reporting and Tax Base Expansion
“Many of our people are outside the tax net, and those who are within the tax net are also largely under-reporting,” Langrial noted, highlighting a core issue in Pakistan’s tax landscape. This statement follows recent reports of the FBR missing its revised tax collection target for the previous fiscal year by Rs165 billion, despite two downward revisions.
The Chairman emphasized a strategic shift in the FBR’s approach. “Instead of filer and non-filer, we have now introduced the criterion of eligibility and ineligibility,” he explained, referring to new measures aimed at differentiating taxpayers based on their compliance and declared resources.
IMF Objections and Government’s Commitment
Langrial also touched upon discussions regarding tax exemptions, particularly for the education and research sectors. He revealed that while there was consensus within the government that researchers and teachers should receive tax rebates, the International Monetary Fund (IMF) had raised objections to this proposal.
Despite these challenges and the IMF’s stance on certain exemptions, the FBR Chairman reiterated the government’s commitment to the ambitious targets. “The government has not given the FBR an easy target for the current fiscal year,” he said, concluding that “the tax collection target for the current fiscal year is not easy but achievable.”
The FBR’s focus remains on expanding the tax base and ensuring that both existing and new taxpayers contribute appropriately to national revenue, despite the complexities involved in a broad-based tax reform agenda.
