Stricter Enforcement & Reforms To Boost Tax Collection: FBR Chairman
Umer Jamshaid Published December 22, 2024 | 09:20 PM
ISLAMABAD, (UrduPoint / Pakistan Point News - 22nd Dec, 2024) Chairman, Federal board of Revenue (FBR), Rashid Mahmood Langrial on Sunday said that FBR was committed to address tax compliance and expand the tax base to meet collection targets.
Speaking to a private news channel, he said that the main focus was on encouraging non-filers to contribute rather than burdening existing taxpayers.
He pointed out that only half of Pakistan’s 11 million potential taxpayers are filing returns, leaving significant room for improvement.
The chairman said that the FBR witnessed a fourfold increase in retailer tax filers this year, surging from 200,000 to 600,000, far exceeding initial projections of 50,000 to 100,000. “This remarkable rise is due to advanced tax measures and policy enforcement,†he said.
Answering a question, he said, “In our tax administration, there was a lack of planning, especially in FBR. We have conducted first-order analyses, but there were no models to understand the second and third-order effects.
Now, under the Prime Minister’s direction, we are developing analytical models to better comprehend the outcomes of any policy."
Chairman also underlined that stricter rules are in place to incentivize compliance. Non-filers will face restrictions, such as being unable to open current or savings accounts unless they register as taxpayers.
Answering a question regarding the new taxes impositions, he said that no new taxes were being imposing, instead focusing on optimizing current rates and expanding the tax base.
Efforts were underway to strengthen enforcement through the hiring of over 1,400 auditors and chartered accountants to improve compliance and accountability.
With ongoing reforms, he expressed cautious optimism about achieving tax collection targets, reiterating the importance of broadening the tax culture in Pakistan.
