Economic Stability Without Tax Net Growth Not Possible: FBR Chairman
Economic stability without tax net growth stability remains impossible.
This warning came from Federal Board of Revenue Chairman Rashid Langrial.
He said only a small group pays taxes, while many continue avoiding responsibility.
Speaking at a panel discussion in Lahore, he stressed inclusive taxation. According to him, the economy suffers when compliance stays low.
Therefore, expanding the tax base has become unavoidable.
Who Should Enter the Tax Net
Rashid Langrial highlighted household consumption trends. For example, seven percent of 42 million homes use air conditioners. These households should enter the formal tax system.
Tax return numbers have increased this year. Filers rose from 4.9 million to 5.9 million. However, 320,000 filers reported zero tax liability, raising concern.
Unequal Burden on Salaried Citizens
Pakistan’s tax to GDP ratio remains lower than regional peers. This gap exists due to weak compliance and narrow coverage. As a result, salaried individuals face higher pressure. Salaried workers cannot hide earnings easily.
Meanwhile, other income groups often remain undocumented. Therefore, fair distribution requires urgent reforms. Langrial also shared professional data. Only 55,000 of 176,000 registered doctors filed returns. In addition, many declared incomes below Rs2 million annually.
Reforms, Accountability, and Expert Views
The FBR chief said rate cuts need broader participation. Only Rs38 reaches the federal government from every Rs100 collected. This limits public spending and development capacity. He confirmed strong enforcement measures.
For example, sugar sector monitoring generated billions in extra revenue. Audits will follow incorrect or misleading tax filings. On accountability, Langrial noted multiple arrests. These actions show seriousness toward transparency.
The goal remains fairness and shared responsibility. Former finance minister Miftah Ismail also spoke. He admitted past policy errors and urged continued reforms.
According to him, tax revenue keeps the country functioning. Top taxpayer Musaddiq Zulqarnain supported stricter enforcement. He compared tax evasion to avoiding zakat obligations. Everyone must contribute, regardless of status or income level.
