| Karachi: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has revealed that even the wealthiest 5% of Pakistanis do not pay taxes and also criticised the amnesty schemes for their negative impact on the taxation system. Information referenced here is drawn from articles published on October 17.
Read: Tax filing deadline extended by FBR amid calls for balanced tax reforms
As per details, Langrial expressed optimism about a potential reduction in interest rates by 150-200 basis points, emphasising that cultivating a strong tax culture is the only sustainable solution to the nation’s economic woes. He supported Federation of Pakistan Chamber of Commerce and Industry (FPCCI) demand to target tax evaders rather than penalise long-standing taxpayers, noting that current tax revenues are primarily directed toward debt servicing, which he deemed harmful to economic stability.
Concerns were raised by FPCCI Senior Vice President Saquib Fayyaz Magoon regarding the FBR’s ambitious revenue target of PKR 12.9 trillion, which marks a 40% increase year-on-year while the economy grows at a mere 2%.
Read: KCCI seeks FBR relief on Sales Tax Affidavits, cites audit complications
Langrial further stressed the need to reform and lower income and corporate tax rates, criticising the practice of collecting taxes only to cover debt servicing. He pointed out that 95% of citizens are poor and contribute to national revenue primarily through sales tax, while only 5% of the population is wealthy, shouldering most of the tax burden. However, he acknowledged that some individuals within this wealthy group evade their tax responsibilities.
In a related development, the government has extended the deadline for filing income tax returns for the tax year 2024 to October 31, providing relief to those who could not meet the previous deadline of October 14 due to banking disruptions 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. To match last year’s total of 6.464 million returns, the FBR requires an additional 1.927 million submissions. |
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