The Federal Board of Revenue (FBR) Chairman has admitted that corruption continues to be a problem within the department.
While briefing the National Assembly’s Standing Committee on Finance, the FBR chairman, Rashid Langrial, acknowledged that corrupt practices are still taking place in FBR.
He explained that recent changes in tax laws aim to broaden the tax base by focusing on high-income individuals and large-scale business transactions.
The new laws grant FBR officers expanded powers to tackle issues such as black money and tax evasion.
The FBR chairman also highlighted measures to restrict non-filers from engaging in economic activities, including purchasing property, vehicles, and making investments.
Non-filers will be excluded from the formal economy, which the government hopes will help curb the black economy.
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Additionally, the cabinet has been authorized to hire auditors to strengthen tax collection efforts. Langrial mentioned that a detailed review of the bill will occur within the cabinet before any final decisions are made.
Finance Minister of State Ali Pervez Malik emphasized the importance of addressing the tourism economy imbalance and stopping vehicle purchases with black money to ensure economic sustainability.
Despite these reforms, Langrial noted that tax revenues have not grown in proportion to inflation and economic growth, with 2024 tax revenue remaining at levels seen in 2008.
Langrial also pointed to increases in income and sales taxes, which have affected salaried individuals. The NA committee chairman voiced concerns that these reforms may worsen existing problems, especially given the economic pressures stemming from foreign exchange shortages.
Committee member Hina Rabbani Khar criticized the ongoing corruption within the FBR, calling for a more effective and transparent tax system. She also argued that no one should have the authority to block citizens’ bank accounts without due process.
