FBR Chairman Acknowledges Corruption Within Department, Outlines New Measures to Combat Tax Evasion
Islamabad: Federal Board of Revenue (FBR) Chairman Rashid Langrial admitted to ongoing corruption within the department during a briefing to the National Assembly’s Standing Committee on Finance on Tuesday.
“Corrupt practices are still going on in FBR,” Langrial said, acknowledging systemic issues as he outlined the government’s latest tax reforms aimed at broadening the tax base and combating evasion.
Key Reforms and New Measures
Langrial emphasized changes in tax laws designed to target high-income individuals and significant business transactions. He noted the introduction of stricter measures against non-filers, including restrictions on:
- Economic Transactions: Non-filers will be barred from purchasing cars, property, and making formal investments.
- Participation in the Formal Economy: These restrictions aim to encourage compliance and reduce reliance on the black economy.
The chairman also highlighted enhanced powers for FBR officers to address black money and tax evasion. To further strengthen tax collection, the cabinet has been authorized to recruit additional auditors. A detailed review of the bill is expected before final approval.
Economic Concerns and Challenges
Langrial admitted that despite inflation and economic growth, tax revenue remains stagnant at levels comparable to 2008. He also acknowledged the impact of increased income and sales taxes, which have placed additional burdens on salaried individuals.
State Minister for Finance Ali Pervez Malik echoed the importance of addressing economic imbalances, particularly in the tourism sector, and curbing vehicle purchases with black money to ensure sustainable growth.
Broader Implications
The government’s reforms represent a push toward formalizing economic activities and increasing transparency within the tax system. However, the chairman’s candid acknowledgment of corruption underscores the significant challenges that remain in achieving these goals.
