ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial openly acknowledged the persistence of corruption within the department during a briefing to the National Assembly’s Standing Committee on Finance.
Chairman FBR, nevertheless, gave no plan or strategy to overcome this decades-long menace in the FBR.
“Corrupt practices are still ongoing in the FBR,” Langrial admitted while addressing the committee. He further explained that recent changes in tax laws aim to expand the tax base by targeting high-income earners and individuals engaged in substantial business transactions.
Langrial highlighted several initiatives to tackle black money and tax evasion, including granting FBR officers additional powers under the new regulations. He emphasized that non-filers will face stricter restrictions, such as being barred from purchasing property, cars, or making investments. This step is part of the government’s broader effort to formalize business activities and curb the black economy.
To further strengthen tax collection, the cabinet has been authorized to recruit auditors, ensuring more rigorous oversight. However, Langrial clarified that a detailed review of the proposed bill will take place in the cabinet before final implementation.
Economic Challenges and Reforms
Despite these measures, Langrial acknowledged the disconnect between inflation, economic growth, and tax revenues, noting that the tax collection level in 2024 remains comparable to that of 2008. He also addressed the burden of increased income and sales taxes, which have particularly impacted salaried individuals.
Finance Minister of State, Ali Pervez Malik, underscored the importance of addressing structural imbalances in the tourism economy and preventing vehicle purchases with black money as key steps for ensuring economic sustainability.
Concerns Over the Impact of Reforms
The committee expressed reservations about the effectiveness of these reforms. The chairman of the NA body warned that the current measures might worsen existing challenges instead of solving them, potentially causing further hardship for the public. Langrial also pointed to the mounting economic pressure from foreign exchange shortages.
Criticism from Lawmakers
Committee member Hina Rabbani Khar criticized the ongoing corruption within the FBR and raised concerns over the authority to block citizens’ bank accounts. She called for a more transparent and effective tax system, emphasizing that unchecked powers could lead to greater issues.
As the government attempts to implement reforms, the challenge of balancing stricter tax measures with economic stability and public trust remains a pressing issue.
