Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has said that the revenue collected in 2008 is where we still stand today.
The FBR Chairman stated that the entire year's tax collection was being utilised for paying interest on loans.
While addressing a ceremony at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Langrial noted that there has been an improvement in the country’s economic indicators.
He credited this economic progress to the cooperation of the business community, following two to three years of extremely challenging conditions.
He said that as the inflation rate decreased, the policy rate also began to decline. There should not be a difference of more than 3 to 4 percent between the inflation rate and the policy rate.
Economic experts are also predicting a reduction of up to 2 percent in the interest rate, and this decrease in the interest rate has provided significant support to the economy.
The FBR Chairman stated that the GST rate was previously 16 percent, which has now increased to 18 percent.
He said that there are good people among taxpayers, including businessmen and industrialists who do not evade even a single rupee in taxes.
These individuals do not feed their children with ill-gotten money. There are also officers in the FBR who are working for the improvement of the national economy, but the truth is that their numbers are very few.
Rashid Mahmood Langrial said further sais "It is not right to spend the entire year’s collected taxes on debt payments. All year long, taxes are being collected only to pay the interest on loans. In these circumstances, no solution seems to be in sight."
He said that 90% of people in Pakistan do not pay taxes. There are 43 million households in the country, out of which 4 million homes have air conditioners. The current tax rate is not appropriate; the tax rate needs to be reduced.
Corporate tax rates also need to be lowered, and the corporate tax rate should not exceed 25%. This does not mean that 90% of the poor should not be taxed. The tax-paying population in the country is just 5% because these 5% are the wealthy individuals.
FBR extends income tax return deadline to October 31
The FBR has extended the deadline for submitting income tax returns to October 31, 2024, following requests from trade organisations and tax bar associations.
This extension, made under Section 214A of the Income Tax Ordinance 2001, provides taxpayers additional time to file their returns and comply with regulations amid operational challenges.
The previous deadline had been extended from September 30 to October 14.
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