Corruption in Department: FBR Chairman Admits
- Fahad Bin Khalid
- January 22, 2025
- 1:45 pm
- 37
- Current Affairs
FBR corruption and reforms remain central to the ongoing efforts to improve Pakistan’s tax system. During a briefing to the National Assembly’s Standing Committee on Finance, FBR Chairman Rashid Langrial admitted that corruption still persists in the department. Langrial acknowledged the challenges of tackling corrupt practices within the FBR while outlining new tax reforms.
Key Reforms to Combat Tax Evasion
Langrial emphasized the importance of expanding the tax base and curbing black money in Pakistan. One significant reform includes restricting non-filers from buying property, vehicles, or making formal investments. These measures aim to formalize economic transactions and reduce the influence of the black economy. The FBR aims to promote transparency in financial dealings to help stabilize the economy.
Another crucial reform involves granting FBR officers more power to tackle tax evasion. Additionally, the government plans to allow the cabinet to recruit auditors to improve tax collection and accountability. These changes are designed to create a more effective tax system.
Stagnant Tax Revenues and Systemic Issues
Despite these reforms, Langrial admitted that tax revenues remain stagnant, noting that they have not kept pace with inflation or economic growth. Tax revenue levels are still comparable to those from 2008. This lack of growth indicates that deeper systemic issues need to be addressed for long-term improvements in revenue generation.
Support and Concerns Regarding Reforms
State Minister for Finance Ali Pervez Malik expressed support for the reforms, highlighting the need to curb vehicle purchases made with black money. He emphasized the importance of these reforms for achieving economic sustainability. However, some members of the committee, including Hina Rabbani Khar, raised concerns about the new powers granted to FBR officials, particularly the ability to block citizens’ bank accounts. Khar called for a more transparent and effective tax system.
Challenges and Accountability
The Standing Committee on Finance recognized the need for these reforms but stressed that addressing public concerns and ensuring greater accountability within the FBR is crucial. Strengthening the FBR’s accountability will help build public trust in the system and improve overall tax compliance.
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