- The country’s workforce amounts to 67 million: the FBR chief
- Langrial says that top 1% of households escape RS1.233 billion taxes.
- The 5% higher than the sampling of RS1.611 billion; 95% remaining Eleude RS140BN.
Islamabad: Amid Government’s Efforts To Increase The Tax Revenue, Federal Board of Return (FBR) Chairman Rashid Mahmoud Langrial has defended proposed for the Tax Body to Arrest Ceos, Cfos, and Board of Directors on Tax Fraud Arguing That the FBR Assomed (CRPC) PowerS, The news reported on Sunday.
Speaking at a meeting of the Senate Committee on the Permanence of Finance, Langrial supported the changes proposed in the finance bill and said there were no countries in the world where tax agents were not authorized to carry out arrests for tax fraud.
Citing the example of India and Bangladesh who granted arrest powers, the head of the tax authority said that the country’s workforce amounted to 67 million and revealed that the highest households had escaped 1,233 billion rupees.
“The highest 5% escaped 1,611 billion rupees. The remaining 95% of the total workforce have escaped only 140 billion rupees,” he said.
The remarks of the President of the FBR relate to the backdrop of the Budget of the RS17.57 Billions for the financial year 2025-2026 deposited by the government aimed at a GDP growth target of 4.2%.
In his speech on the budget earlier this week, the Federal Minister of Finance Muhammad Aurangzeb discovered the objective of tax collection of FBR of RS14 131 billion – representing an increase of 18.7% compared to the current financial year.
From this amount, 8,206 billion rupees will be allocated to the provinces as well as their constitutional share on federal taxes, he added.
On the tax front without tax, the government has set an ambitious objective of 5,147 billion rupees, reflecting efforts to optimize income from public enterprises and other non -tax sources. After taking into account provincial transfers, the federal government net revenues are estimated at RS11 072 billion.
The total federal spending was budgeted at 17,573 billion rupees, with 8,207 billion rupees assigned to the debt service – an essential element which underlines the government’s commitment to budgetary responsibility.
The generation of the revenue generation within the Senate Committee, Langrial said that the large wall of protectionism through prices caused gains of efficiency on the internal market, systematically unworthy and unskilled threads were made of CEO using tariff protections. He asked the members of the Committee to abolish the import rates to make the economy competitive.
During the panel session, the participants also continued the deliberations to finalize the recommendations for the 2025-26 financial bill, under the Senate committee, recommended to remove 18% of the TPS on the import of solar panels, increasing the minimum wrs of RS37,000 to 40,000 rupees.
Legislators oppose arrest powers
Senator Anusha Rahman of the Muslim League of Pakistan in power (PML-N) opposed the power of the FBR to stop the CEOs, financial directors and administrators on the allegation of tax fraud and took the position that the FBR has removed the CRPC and assumed such powers. She asked how the FBR could stop anyone on the basis of a simple intention of fraud.
Senator Farooq H Naek of the Pakistani peoples (PPP) party also opposed the granting of radical powers. Senator Shibli Faraz of Pakistan Tehreek-E-insaf (PTI) said that the country has transformed into a police state and asked the FBR to withdraw powers from the commissioners of internal income (IR) and officers.
The committee asked the FBR to enter and destroy falsified vehicles on the recommendation of Senator Farooq H Naek.
The President of the Senate panel addressed the question of the fact that around 250 companies have received opinions under the anti-balance law (AML) in the past, so that its program should be linked to the authorization of the Minister of Finance and the President of the FBR.
The financial tsar Aurangzeb said that the issuance of advice to the business community under the LMA Act was a very serious affair and that the government would examine the powers of the LMA in the FBR.
The problem was revealed when the customs of FBR members (Politicians) explained the creation of the Directorate General of Intelligence and Customs of Risk Management proposed within the framework of the 2025-26 financial bill. The proposed management would have the powers to exercise under the LMA law.
FBR Member Customs Explained That New Section (187a-Presumption As to Legal Character of Vehicle), where any vehicle is Detated or Seized Under this act or the Rules Made Thereunder and Such Vehoon Upon Forensic Examination is found to have a tapered chassis number or cut and Number Filleted with Welding Material or Re-Stamped or Body Change, Such Vehicle Shall Be Presumed to be Smuggled, Even If Registered With Any Motor Registration Authority, and Shall Be Sumchable Confiscation, he added.
Senator Rahman also raised the question of why the FBR criminalized tax issues and abolished the powers of the CRPC.