FBR chairman admits to corruption within the department

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial admitted to corruption within the department on Tuesday, ARY News reported.

“Corrupt practices are still going in FBR,” Rashid Langiral said while briefing the National Assembly’s Standing Committee on Finance.

Langrial told the NA body that the changes in tax laws are intended to increase the tax base, targeting higher-income individuals and those engaged in significant business transactions.

Under the new laws, FBR officers are being granted additional powers to address issues of black money and tax evasion, he added.

The FBR chairman noted that non-filers will be restricted from engaging in economic transactions, such as purchasing cars or property and making investments. He also highlighted that non-filers will be unable to participate in the formal economy, reinforcing the government’s efforts to formalize business activities and curb the black economy.

The cabinet has also been given the authority to recruit auditors to strengthen tax collection processes. Langrial mentioned that a detailed review of the bill will take place in the cabinet before any final decision is made.

Finance Minister of State, Ali Pervez Malik, stressed that addressing the imbalance in the tourism economy and halting vehicle purchases with black money are essential steps for the country’s economic sustainability.

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Despite these measures, Langrial acknowledged that tax revenues have not grown at a proportionate rate to inflation and economic growth, pointing out that tax revenue in 2024 was only at the same level as in 2008.

He also mentioned the increase in income and sales taxes, including hikes that have impacted salaried individuals.

The NA body chiarman expressed concerns that these reforms may exacerbate existing problems rather than resolving them, noting that the public is likely to face difficulties under the current system. He also highlighted the pressure on the economy due to foreign exchange shortages.

Hina Rabbani Khar, a member of the Committee, criticized the ongoing corruption within the FBR and emphasized that no one should have the authority to block citizens’ bank accounts. She called for a more effective and transparent tax system.