LAHORE: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial says Pakistan will collect Rs13,500 billion in tax revenue this fiscal year, despite falling short in the first half.
Speaking at “Think Fest 2025” in Lahore, Langrial says the FBR achieved 97 percent of its December 2024 tax collection target by collecting Rs1328 billion against the target of Rs1370 billion. He adds that December collections increased by 35 percent compared to November and 56 percent compared to December last year.
Langrial highlights a Rs385 billion shortfall for the first six months, with Rs5624 billion collected against a target of Rs6009 billion. The IMF set a target of Rs6009 billion for December 2024, but the FBR fell short.
He says the tax system only covers about 5 percent of the population and is flawed. “Those who talk on TV about fixing the tax system are themselves tax evaders,” he says. “Tax rates in Pakistan are wrong and should be fixed.”
Langrial says 60 percent of the population falls below the tax threshold, but 6.7 lakh people in the tax net, including the super-rich, are not paying their full share.
“The salaried class is included in the tax net because authorities fail to collect taxes from the wealthy,” he says, adding that the government plans to reduce high tax rates on salaried individuals and others.
Langrial warns that a new law will stop tax evaders from purchasing vehicles, property, and other items. “Pakistan doesn’t fall among overtaxed countries,” he says. “Neither are taxes fully paid, nor are full services provided in return.”
He says over 0.4 million retailers have joined the tax net this year, but many have not disclosed their income. He also calls for measures to stop smuggling of petroleum products.
“We have given an order to Karachi Shipyard and Engineering Works to build a container vessel with a capacity of 1,100 containers, and it will be delivered in two years,” says Sultan Chawla, Chairman of the Pakistan National Shipping Corporation (PNSC). He adds that efforts are ongoing to strengthen public sector revenue sources.
Langrial says the FBR will focus on fixing the system, increasing compliance, and meeting the Rs13,500 billion revenue target.
