On Wednesday, Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue (FBR), advocated for revising and reducing income and corporate tax rates.
FBR’s Chairman criticized the practice of collecting taxes annually and only using them for debt servicing. “It’s incorrect to collect taxes for the entire year and allocate them for debt servicing,” Langrial stated.
Langrial pointed out the commendable compliance of some government officers, traders, and industrialists who pay every rupee owed in taxes. However, he highlighted a disparity in tax burdens, noting that while 95% of the country’s less affluent population pay taxes through sales tax, the wealthier five percent are subject to direct taxes. Within this wealthier segment, some individuals still fail to meet their tax obligations.
Additionally, Langrial mentioned the recent extension of the deadline for filing income tax returns for 2024 to October 31. This extension provides additional time for those who missed the previous deadline of October 14. He explained that the postponement was necessary due to a three-day bank closure in Islamabad and Rawalpindi, which complicated tax filing processes.
The original deadline for these submissions was September 30. As of October 14, the FBR had received 4.537 million income tax returns, a significant increase from the 2.183 million received by the same date last year. An additional 1.927 million returns are needed to match the total of 6.464 million returns received for the tax year 2023.
