Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial on Saturday committed to collecting Rs13,500 billion in tax revenue this year despite facing a shortfall in the first half of the current fiscal year.
The FBR faced a significant tax shortfall of Rs386 billion from July to December, according to “The News.” Revenue collection stood at Rs5,623 billion in the first six months of the current fiscal year, falling short of the target of Rs6,009 billion.
The IMF had set an indicative target of Rs6,009 billion for the end of December 2024, but the FBR managed to collect Rs5,623 billion during the first half of the fiscal year.
Speaking at an event, the FBR chairman criticized the culture of tax evasion in the country, stating that those advising on how to fix the system often turn out to be tax evaders themselves.
He said that those individuals liable to pay taxes were not fulfilling their responsibilities properly.
He pointed out that there were issues both with taxpayers and collectors, adding that tax rates in the country were incorrect.
“Tax rates in Pakistan are wrong and should be fixed,” he added.
The chairman stated that the tax system was designed to bring the top 5% of the wealthy into the tax net. He vowed to collect Rs13,500 billion in revenue this year.
Responding to a question, the FBR chairman said: “Pakistan doesn’t fall among the overtaxed countries.”
He added that the people were neither paying full taxes nor receiving full services in return.
The salaried class is included in the tax net because the authorities have failed to collect taxes from the wealthy.
The chairman also mentioned that the government was aware that the tax rate on certain items should be reduced.
He further stated that the government would introduce a new law making shopping difficult for those who do not file their tax returns.
Over 0.4 million retailers were included in the tax net this year, he added, but these retailers have yet to disclose their monthly income. He also emphasized the need to stop the smuggling of petroleum products.
