FBR chief vows to collect Rs13,500bn in tax revenue this year

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial on Saturday vowed to collect Rs13,500 billion in tax revenue this year despite facing 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. The revenue collection stood at Rs5,623 billion in the first six months of the current fiscal year, falling short of the desired target of Rs6,009 billion.

The IMF had given an indicative target of Rs6,009 billion till the end of December 2024 but the FBR managed net collection of Rs5,623 billion during the first six months of the current fiscal year. 

Speaking at an event today, the FBR chief slammed the culture of tax evading in the country, saying that those advising on how to fix the system later turn out be tax evaders.

Addressing an event, the FBR chairman said that those individuals who were liable to pay tax were not fulfilling their responsibilities properly.

There were problems in both — the tax payers and collectors — he said, adding that the tax rates in the country were not correct.

“Tax rates in Pakistan are wrong which should be fixed,” he added.

The chairman said that the tax system was designed to bring the top 5% of the wealthy into the tax net. He vowed to collect revenue worth Rs13,500 billion this year.

Responding to a question, the FBR chairman said: “Pakistan doesn’t fall among the overtaxed countries.”

Neither they were paying full taxes nor getting full services in return, Langrial added.

The salaried class is included in the tax net as the authorities concerned have failed to collect taxes from the wealthy people.

The government was aware that the tax rate on certain items should be reduced, the FBR chief said.

He said that the government would introduce a new law that will make shopping difficult for those who did not submit their tax returns.

Over 0.4 million retailers were included in tax net this year, he said, adding that the retailers yet to disclose their monthly income. He also stressed the need for stopping smuggling of petroleum products.