Islamabad (HRNW)- Federal Board of Revenue (FBR) Chairman Rashid Langrial has emphasized that achieving economic stability in Pakistan is not possible without significantly expanding the tax net. He said that while some citizens regularly pay taxes, a large segment of society continues to avoid fulfilling its tax obligations.
Speaking at a panel discussion held at Al Hamra, Rashid Langrial revealed that around seven percent of the country’s 42 million homes have air conditioners, which should be brought into the tax net. He added that last fiscal year 4.9 million people filed tax returns, which has increased to 5.9 million this year. However, 3.20 million filers declared themselves non-taxable, calling it a serious concern for the economy.
He stated that Pakistan’s tax-to-GDP ratio remains lower than other regional countries due to a narrow tax base and weak compliance. The FBR Chairman noted that the salaried class bears a disproportionate burden because their income is transparent and difficult to conceal, adding that tax rates on salaried individuals in Pakistan are comparatively higher in the region.
Rashid Langrial said that only 55,000 out of 176,000 registered doctors filed tax returns, and among them, 39,000 declared annual incomes below Rs 2 million, highlighting widespread underreporting. He further explained that out of every Rs 100 collected in revenue, only Rs 38 reaches the federal government, limiting financial resources. He stressed that there should be no special tax rates for exporters and warned that companies submitting incorrect returns would face audits.
The FBR Chairman also shared that institutional reforms are underway to boost revenue, including improved monitoring of sugar mills, which has already resulted in the recovery of billions of rupees. Addressing corruption, he said that several officers have been arrested, demonstrating the department’s commitment to accountability.
Former Finance Minister Miftah Ismail, speaking at the event, said that he had planned to remove taxes worth Rs 6 to 7 billion after returning from a US visit with the Prime Minister but was removed from office before he could implement the changes. He admitted to past mistakes and urged the current leadership to push forward with reforms, emphasizing that national development depends on effective revenue collection.
Meanwhile, Pakistan’s highest taxpayer Musaddiq Zulqarnain said that tax evasion is similar to stealing zakat, as taxes directly benefit the country. He urged all segments of society — bureaucrats, politicians, and salaried individuals — to contribute fairly to national development and called on FBR officials to utilize available data to improve enforcement and compliance.
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