ISLAMABAD: Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, emphasized the need to fix and reduce income and corporate tax rates during a press briefing on Wednesday.
He criticized the current taxation system, stating, “It is wrong to collect tax for the whole year and pay it for debt servicing.”
Langrial highlighted the plight of the majority of the population, noting that 95 percent of citizens are poor yet contribute to the national tax revenue through sales tax.
He explained that only 5% of the population is wealthy, and it is upon them that the majority of the tax burden falls. However, he pointed out that there are individuals within this wealthy group who evade their tax obligations.
In a related development, the government has extended the deadline for filing income tax returns for the tax year 2024 to October 31. This extension provides additional time for those who could not file their returns by the previous deadline of October 14, which had been complicated by the closure of banks in Islamabad and Rawalpindi.
As of October 14, the FBR had received approximately 4.537 million income tax returns, a significant increase from 2.183 million during the same period last year. For the tax year 2023, a total of 6.464 million returns were submitted. To match last year’s figures, the FBR requires an additional 1.927 million returns.
Langrial’s statements come as part of ongoing discussions regarding tax reforms and the broader economic challenges facing the country.
