FBR Chairman admits to corruption within department, unveils new tax reforms.

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial acknowledged the existence of corruption within the department on Tuesday, during a briefing to the National Assembly’s Standing Committee on Finance.

“Corrupt practices are still ongoing in the FBR,” Langrial stated, shedding light on the persistent issues within the tax administration. Despite the challenges, he outlined the government’s efforts to reform tax laws in a bid to expand the country’s tax base and target higher-income individuals, as well as those involved in large-scale business transactions.

As part of the new measures, Langrial noted that FBR officers would be granted additional powers to address the issues of black money and tax evasion. The reforms are aimed at curbing illicit financial activities and ensuring that individuals and businesses contribute fairly to the country’s economy.

One of the key provisions under the new laws is that non-filers will face restrictions in economic transactions. Non-filers will be barred from purchasing property and cars and making investments. This move is designed to formalise the economy and prevent the growth of the black market, Langrial explained.

Additionally, the government has authorised the cabinet to recruit auditors to strengthen the tax collection process. A detailed review of the proposed bill will be conducted by the cabinet before any final decisions are made, Langrial added.

State Minister for Finance, Ali Pervez Malik, emphasised the importance of addressing the imbalance in the tourism economy and preventing vehicle purchases with black money, describing these measures as crucial for the country’s long-term economic sustainability.