Federal Board of Revenue (FBR) Chairman Rashid Langrial admitted to persistent corruption within the FBR during a briefing to the National Assembly’s Standing Committee on Finance.
“Corruption is still prevalent in FBR,” Langrial acknowledged, as he outlined proposed changes to tax laws aimed at expanding the tax base and targeting high-income earners and major business transactions.
Langrial highlighted key reforms, including granting FBR officers greater authority to tackle black money and tax evasion. He stressed that non-filers would face restrictions on economic activities such as buying property, vehicles, or making formal investments.
“These measures aim to formalize economic transactions and curb the black economy’s influence,” Langrial stated.
The chairman also revealed that the cabinet would have the power to recruit auditors to strengthen tax collection efforts, with a detailed review of the reforms before implementation.
Despite these measures, Langrial admitted that tax revenues have remained stagnant, failing to keep up with inflation and economic growth, with current revenue levels comparable to those in 2008, indicating a lack of progress.
State Minister for Finance Ali Pervez Malik emphasized the need to address issues within the tourism sector and halt vehicle purchases using black money, stressing the importance of economic sustainability.
However, concerns were raised during the briefing, with Hina Rabbani Khar criticizing the ongoing corruption and opposing the proposal to grant FBR officials authority to block citizens’ bank accounts. She called for a more transparent and efficient tax system.
Langrial acknowledged that the proposed reforms could present new challenges for citizens and noted the strain on the economy due to foreign exchange shortages.
The Standing Committee on Finance recognized the importance of these reforms but emphasized the need to address public concerns and ensure greater accountability within the FBR.
