Karachi: Rashid Mahmood Langrial, the Chairman of the Federal Board of Revenue (FBR), has spotlighted the failure of Pakistan’s wealthiest 5% to pay taxes and has voiced concerns over the detrimental effects of amnesty schemes on the nation’s tax system. This revelation aligns with his broader critique of the current economic strategies and the urgent need for a robust tax culture to address Pakistan’s fiscal challenges.

According to Zameen.Com, Langrial addressed various issues impacting economic stability, including the FBR’s ambitious revenue target of PKR 12.9 trillion—a 40% increase from the previous year, despite the economy’s slow growth rate of only 2%. He argued that the heavy reliance on tax revenue for debt servicing is unsustainable and harms economic stability. The FBR chairman endorsed the Federation of Pakistan Chamber of Commerce and Industry’s (FPCCI) call to focus on tax evaders instead of burdening compliant taxpayers further.

Langrial also highlighted the disproportionate tax burden shouldered by the poor, who contribute primarily through sales tax, while the wealthiest, though fewer, have a significant potential to contribute more but often evade taxes. His comments included a push for reforming income and corporate tax rates to lower levels to foster economic growth and equity.

In response to the challenges faced by taxpayers, the government has extended the deadline for filing income tax returns for the tax year 2024 to October 31, following disruptions in banking services in Islamabad and Rawalpindi. As of the last deadline, the FBR had received over 4.5 million returns, an increase from 2.183 million in the previous period, signaling a potential for achieving a new high in compliance if an additional 1.927 million submissions are made.