FBR Chief New Tax Bill Shields Majority In 2025

Building Trust in Taxes Pakistan is working hard to fix its tax system. Rashid Langrial, the head of the Federal Board of Revenue (FBR), explained the new tax bill to the Senate Standing Committee on Finance. He said that most people in Pakistan—90 to 95% of them—will not be affected by this new tax plan. The FBR Chief New Tax Bill Shields Majority, protecting low-income families from extra taxes.

What the New Tax Bill Does

1. Helping Most People: Rashid Langrial said that 95% of families will not feel the impact of the new tax laws. This is good news for families worried about paying more.
2. Bringing in More Money: The FBR expects the new rules to bring an extra Rs. 5 trillion over the next four to five years. Right now, only 10% of Pakistan’s economy is taxed. With these changes, this could increase to 14%.
3. Stronger Tax Rules: The new law gives the FBR more power. They can freeze bank accounts, take over properties, and stop big purchases from people who don’t pay taxes. The government also wants to set limits on how much cash people can withdraw if they are not registered taxpayers.

Fixing the Tax System

Finance Minister Muhammad Aurangzeb said that many people don’t trust the FBR. Some people are willing to pay more taxes, but they don’t want to officially register because they fear being harassed.

Problems with the Current System:

• Only 42,000 out of 62,000 sales tax accounts are active.
• Businesses that make less than Rs. 100 million a year don’t have to register for sales tax, so many stay out of the system.

Using Technology to Make Things Better The FBR is using new technology to stop corruption. For example, they introduced a system that doesn’t need face-to-face meetings for tax reviews. This cut unnecessary calls to importers from 2,000 to just 200 in one week. These changes are helping make the system fairer and cleaner.

Some Controversial Ideas

1. Private Auditors: The government wants to hire private auditors to check taxes. Some lawmakers think this might lead to more corruption. But the government believes it will help make tax audits more accurate.
2. Checking Business Tax Claims: Businesses often exaggerate their tax deductions. The new law gives tax officers more power to check these claims. However, some worry this could lead to bribery.

What the Senate Thinks

The Senate Committee questioned why this bill is called a Money Bill since it does not change tax rates. The Law Secretary said it still fits the category because it changes how taxes are collected. This means the Senate can only suggest changes but cannot stop the bill.

Enforcing Tax Rules

The FBR now has stronger tools to stop people from avoiding taxes. They can disconnect electricity and gas or ban travel for those who don’t comply. However, these powers haven’t been used much yet. The new bill aims to make enforcement stricter.

The FBR Chief New Tax Bill Shields Majority is an important step to improve Pakistan’s tax system. It protects most families while trying to bring more people into the tax net. Even though trust issues and corruption are big problems, new technology and stronger rules give hope for a better system.