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The newly appointed chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, has raised concerns about the feasibility of the FBR’s ambitious target of collecting Rs40 billion from traders for the current fiscal year. During a high-level meeting chaired by Finance Minister Muhammad Aurangzeb at the FBR headquarters, Langrial questioned the practicality of this goal, noting that the same scheme, known as the Tajir Dost Scheme, only yielded Rs4 billion last year.
Langrial’s skepticism highlights the broader challenge of setting realistic revenue collection targets based on past performance and market conditions. Officials at the FBR typically determine revenue targets based on consumption and import values, but the sharp discrepancy between last year’s collections and this year’s target has sparked debate.
Finance Minister Aurangzeb, who has made unprecedented weekly visits to the FBR headquarters, addressed the meeting with a commitment to closely oversee revenue collection efforts. His frequent visits are aimed at ensuring greater oversight and efficiency in tax administration, diverging from the practice of previous finance ministers who visited less frequently. Aurangzeb’s preference for coffee over traditional tea during these meetings symbolizes his push for a more streamlined and modern approach.
The meeting also tackled the recent legal and operational issues stemming from the Gilgit-Baltistan Chief Court’s order, which has halted tax collection on commodities entering Pakistan from China via the Khunjerab Pass. The Customs representative briefed on the latest developments regarding this order.
In addition, the session reviewed progress in the digitalization of tax procedures, a key focus for Prime Minister Shehbaz Sharif. The Prime Minister has established a task force led by State Minister Ali Pervaiz to oversee these efforts. The goal is to modernize tax collection and streamline processes to enhance efficiency.
Following the meeting, a statement praised the contributions of former FBR Chairman Malik Amjad Zubair Tiwana for his role in budgeting and IMF negotiations. Presentations from key FBR members underscored ongoing efforts to maximize revenue and broaden the tax base.
In a related development, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has criticized the issuance of Rs60,000 tax notices to small traders and industrial units. FPCCI Vice President Asif Sakhi condemned these notices as unfair and counterproductive. Small traders and industrialists have expressed frustration over what they perceive as harsh taxation practices and burdensome electricity bills. Sakhi called for a renegotiation of agreements with independent power producers (IPPs) and the procurement of electricity from cheaper sources to alleviate the financial strain on businesses.
The FPCCI’s concerns reflect broader issues within Pakistan’s economic and taxation landscape, highlighting the need for balanced and equitable policies that support both revenue generation and business sustainability.
