By Commerce Reporter
LAHORE – Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, outlined the board’s reform agenda and highlighted significant challenges in Pakistan’s tax system during his visit to Lahore Chamber of Commerce and Industry.
Langrial emphasized that attractive salary packages have been introduced for FBR employees, aiming to eliminate external influence and improve efficiency.
He reiterated a zero-tolerance policy against corruption, stating, “Corrupt officials have no place in FBR; honest collectors are now in place.”
He urged the public to report corrupt practices, assuring confidentiality for whistleblowers.
Addressing tax issues, he acknowledged that sales tax and income tax rates are unreasonably high but immediate reductions are not feasible. Pakistan’s tax-to-GDP ratio should be 18 per cent, yet massive gaps remain, with Rs3,100 billion in sales tax and Rs2,000 billion in income tax uncollected.
Langrial criticized non-compliance by top earners, saying, “The top 5 per cent evade taxes while advising on revenue targets on TV.” He also announced steps to dismantle auction nexuses, ensuring fair opportunities for all.
This year, Rs70 billion in sales tax refunds were issued, with plans to expedite refunds to a one-day process. Langrial expressed commitment to ruthless reforms to bolster the nation’s economy and revenue collection system.
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