FBR Chairman says most Pakistanis don't fall under tax-net

LAHORE: Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial has said that most Pakistanis don’t fall under tax-net, ARY News reported on Saturday.

Speaking at an event “Think Fest 2025” in Lahore, Chairman FBR acknowledged that around 60 per cent Pakistani population fall below the income tax threshold.

However, he pointed out that there are around 6.7 lac people who do fall into the tax net, including the superrich class, who are not paying their fair share. He claimed that those who talk on TV about how to fix the tax system, are themselves tax evaders.

Calling for reforms, Rashid Mahmood Langrial said the tax system in Pakistan is pretty flawed, with tax rates incorrect and a design that only caters to about 5% of the population.

Chairman FBR said that the problem lies on both sides as taxpayers aren’t paying up and tax collectors failed to collect taxes from the wealthy class which led to the inclusion of the salaried class into the tax net.

He acknowledged that tax rates imposed on a common man and salaried individuals, should be corrected and the government is aware that some tax rates should be reduced.

Chairman FBR warned tax evaders about the promulgation of a law that would bar them from purchasing vehicles, property and other things.

Earlier, it was reported that the FBR has achieved 97 percent of its tax collection target for December 2024, collecting Rs 1328 billion against the set amount of Rs 1370 billion

The Rs 1328 billion collection in December represents a significant increase of 35 percent as compared to November’s tax collection. Furthermore, there was a notable 56 percent increase in tax collection in comparison with December of the previous financial year.

In the first six months of the current financial year, the FBR collected Rs. 5624 billion in taxes, falling short by Rs 385 billion of its target of Rs. 6009 billion.