Latest news with #RashidMahmoodLangrial


Business Recorder
a day ago
- Business
- Business Recorder
FBR seeks 18pc tax-to-GDP ratio by 2027-28
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial Tuesday said that to achieve a national tax-to-GDP ratio of 18 percent by 2027–28, the provinces would be required to contribute three percent (currently 0.8 percent), amounting to Rs5.265 trillion annually (currently Rs961 billion), and the federation 15 percent (currently 11.3 percent, including the petroleum development levy (PDL)). In a recorded press conference, flanked by Minister of State for Finance Bilal Azhar Kayani, the FBR chairman warned that provisions in the law would be invoked to block avenues for tax fraud. On the criminal side, the scope of the law has been revised, and no criminal clauses will be used for tax recovery—only to prevent tax fraud. Langrial stated that tax collection through enforcement measures increased eightfold in 2024–25. The federal revenue (FBR + PDL) to GDP ratio is expected to reach 15 per cent by fiscal year 2027–28, while provinces will need to accelerate efforts to achieve three per cent during the same period. The federal revenue (FBR + PDL) to GDP ratio increased to 11.3 per cent in 2024–25, compared to 9.8 per cent in 2023–24, marking the highest growth. Improving tax-to-GDP ratio crucial to ease Pakistan debt burden: FBR official 'For the first time, all credible international institutions have recognised the FBR's efforts in additional revenue collection through improved compliance,' said the FBR chairman, adding that last year, the FBR's revenue-to-GDP ratio increased to 10.2 percent during fiscal year 2024–25—significantly higher than in the last 10 years. In June 2023–24, it was just 8.8 percent. He emphasised that the country needs to enhance the tax-to-GDP ratio to ensure sustainable economic growth. The increase in the tax-to-GDP ratio is due to three factors, including autonomous growth through inflation. Last year, Rs1.9 trillion was collected from inflation, while this year, ending in June 2025, Rs766 billion was received. In fiscal year 2023–24, new taxes and rates generated Rs107 billion, while this year, Rs805 billion was generated. The biggest shift came from enforcement and implementation this year, with a focus on compliance. Last year (2023–24), Rs105 billion came through compliance; this year, it was Rs865 billion—an eightfold increase in implementation for compliance rate improvement. 'In 2024–25, we are standing at a 12.1 per cent tax-to-GDP ratio, including 0.8 per cent from provincial contributions. The remaining 11.3 per cent comes from the federation, which includes one per cent PDL and 10.2 per cent from the FBR,' said the chairman, adding that provinces are collecting three taxes: property tax, agriculture income tax, and sales tax on services. Langrial said that taxpayers are the most important stakeholders in Pakistan's revenue system, and the government is committed to rebuilding trust between the tax machinery and the people. He emphasised that tax compliance must be based on facilitation, fairness, and transparency—not intimidation or coercion. 'Anyone who pays their taxes honestly is a crown jewel for the FBR and the nation. They are the reason this system functions,' he said, adding that the FBR has undergone substantial internal reforms over the past year aimed at changing institutional behaviour and making the organisation more service-oriented. He added that FBR offices would remain open to facilitate taxpayers. The chairman strongly rejected the use of pressure tactics in tax collection, making it clear that the FBR's mandate is not to extract more than what is legally due. 'Our officers are not expected to collect more money—they are expected to collect the right amount. That is the principle we are working with,' Langrial stressed. He further said that the FBR is working towards a culture of mutual respect and partnership with taxpayers, asserting that enforcement will be used judiciously and only when required to ensure compliance. Kayani said that the effective fiscal and monetary policies introduced by the incumbent coalition government had resulted in the positive performance of various economic indicators and put the economy on a sustainable growth path. The minister said the headline inflation dropped to 4.5 per cent from 28 per cent recorded when the current government took office in 2024. He said, the policies helped stabilise macroeconomic fundamentals without resorting to supplementary or mini-budgets, 'We outperformed our own expectations,' he said, adding that the policy rate was also reduced from 22 per cent to 11 per cent during the same period. The minister noted that a new three-year Extended Fund Facility (EFF) was successfully negotiated with the International Monetary Fund (IMF), which formed the foundation of the government's macroeconomic stabilisation strategy. Contrary to public skepticism, he said, the agreement was timely and comprehensive, and no additional fiscal tightening was needed beyond initial commitments. The government also posted a current account surplus of $1.8 billion, while foreign exchange reserves climbed to $14 billion by June 20, 2025—levels not seen in recent years. The minister acknowledged that declining reserves had historically been the country's biggest economic vulnerability and one of the primary reasons for repeated IMF engagements. However, he asserted that improved trade balances and reduced reliance on imports had helped reverse this trend. He said the FBR recorded an impressive 26 per cent growth in revenue collection during the fiscal year. Regarding the recently-passed federal budget, the minister credited both houses of Parliament for their constructive role and cross-party support during lengthy legislative processes. He said the budget was focused on consolidating macroeconomic stability while pivoting towards export-led and sustainable growth. The prime minister's vision, he added, is to build an economy that earns more foreign exchange, reduces external vulnerabilities, and creates inclusive prosperity. The government's new five-year export policy aims to remove additional customs duties and rationalise maximum import tariffs to 15 per cent, the minister explained. This, he said, would reduce the cost of machinery and raw materials for export-oriented industries, making them more competitive globally and encouraging industrial investment. The minister also highlighted targeted relief for salaried individuals, noting that income tax burdens had been reduced, resulting in higher take-home pay. He projected inflation for the upcoming fiscal year to remain between 6.5 per cent and 7.5 per cent, while salary increases would exceed that range, helping to protect real incomes. Copyright Business Recorder, 2025


Business Recorder
4 days ago
- Business
- Business Recorder
Pakistan Business Council complains against FBR member
ISLAMABAD: Pakistan Business Council (PBC) has lodged a strong protest with Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial against alleged rude behaviour of FBR Member Inland Revenue (Policy) during meetings of the Anomalies Committees. Ehsan Malik, Chairman Anomalies Committee (Business) in a letter to FBR Chairman said that despite repeated requests the meetings of the Anomalies Committees were not called early enough to allow changes in the fiscal bill, nor was the Member IR (Policy) available to start the meeting on time or to attend it for more than ten minutes. 'We were informed that he had urgent matters to attend to. Members of the Anomalies Committee were kept waiting from 2 pm to 2.45 pm on June 24th and then after a ten-minute presence, the Member IR (Policy) was called out, leaving no one from the FBR in the room. Members of the Committee waited for another 45 minutes before starting the discussion. Member IR (Policy) did not join the meeting till its conclusion. 'The Anomalies Committee (Business) was established by you and was composed of the Presidents and CEOs of eleven leading Chambers and business bodies of Pakistan. Besides their own businesses, the members have important matters concerning their constituents to take care of. Their time is valuable. Keeping them waiting was rude and disrespectful. Only taxpayers can have anomalies in budget proposals, and they must be heard. At my request, the members abstained from resigning and walking out of the meeting. 'I am attaching the minutes of the meeting that we had to conduct without the Member IR (Policy). You will note many anomalies that need to be addressed. Kindly let us know how you intend to deal with these, now that the Finance Bill has been passed. Finally, we appreciate the way the Customs meeting was held.' Copyright Business Recorder, 2025


Business Recorder
5 days ago
- Business
- Business Recorder
PBC complains against FBR member
ISLAMABAD: Pakistan Business Council (PBC) has lodged a strong protest with Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial against alleged rude behaviour of FBR Member Inland Revenue (Policy) during meetings of the Anomalies Committees. Ehsan Malik, Chairman Anomalies Committee (Business) in a letter to FBR Chairman said that despite repeated requests the meetings of the Anomalies Committees were not called early enough to allow changes in the fiscal bill, nor was the Member IR (Policy) available to start the meeting on time or to attend it for more than ten minutes. 'We were informed that he had urgent matters to attend to. Members of the Anomalies Committee were kept waiting from 2 pm to 2.45 pm on June 24th and then after a ten-minute presence, the Member IR (Policy) was called out, leaving no one from the FBR in the room. Members of the Committee waited for another 45 minutes before starting the discussion. Member IR (Policy) did not join the meeting till its conclusion. 'The Anomalies Committee (Business) was established by you and was composed of the Presidents and CEOs of eleven leading Chambers and business bodies of Pakistan. Besides their own businesses, the members have important matters concerning their constituents to take care of. Their time is valuable. Keeping them waiting was rude and disrespectful. Only taxpayers can have anomalies in budget proposals, and they must be heard. At my request, the members abstained from resigning and walking out of the meeting. 'I am attaching the minutes of the meeting that we had to conduct without the Member IR (Policy). You will note many anomalies that need to be addressed. Kindly let us know how you intend to deal with these, now that the Finance Bill has been passed. Finally, we appreciate the way the Customs meeting was held.' Copyright Business Recorder, 2025


Business Recorder
23-06-2025
- Business
- Business Recorder
New taxation measures announced
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial Sunday announced new taxation measures of Rs 36 billion to narrow down financial gap on account of reduction in sales tax from 18 percent to 10 percent on solar panels and proposed increase in salary for government employees. FBR Chairman presented these additional taxation measures before the National Assembly Standing Committee on Finance on Sunday. FBR Chairman highlighted that the measures have been proposed to fill the financial gap for 2025-26. Over Rs623bn new taxes unveiled National Assembly Standing Committee on Finance approved following three new taxation measures: (i); Federal Excise Duty of 10 percent on Day old Chicks (DOC) of poultry sector. (ii); Rate of tax increased from 25 percent to 29 percent on dividend received by a company from mutual fund deriving income from profit on debt. (iii); Withholding tax has been increased from 15 to 20 percent on profit on government securities paid to any person (institutional investors) other than an individual. The new taxation measures would be made part of the amendments in the Finance Bill (2025-26). In budget (2025-26), the FBR has taken new taxation measures of Rs 312 billion and enforcement measures of Rs389 billion for 2025-26. Excluding Rs 8.5 billion due to decrease in sales tax on solar panels, the net revenue impact of taxation measures now stood at Rs 339.5 billion for next fiscal year. National Assembly Standing Committee on Finance also approved Finance Bill (2025-26) with approval of certain recommendations of the Senate committee, as well as, recommendations of the NA Finance committee. FBR Chairman informed the committee that there is a financial gap of around Rs 35-36 billion including Rs 12 billion due to increase in salary, Rs 8.5 billion on account of reduction in sales tax on solar panels. He said the federal government also added some amount for distribution of revenue to provinces under the NFC Award. He said that the government has shared six new taxation measures with the International Monetary Fund (IMF). Out of these six measures, three have been approved by the IMF. Earlier, Finance Committee was informed that a uniform tax rate of 10 percent would be applicable on imported raw cotton and local cotton. Both types of cotton would now be treated at par. Copyright Business Recorder, 2025


Business Recorder
21-06-2025
- Business
- Business Recorder
Investment in SCRAs: 12-month holding period proposed for tax concession: FBR chief
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial Saturday said the FBR has proposed a holding period of 12 months for availing concessionary tax regime on investment made in Special Convertible Rupee Accounts (SCRA) under Finance Bill (2025-26). While review of Finance Bill (2025-26) on Saturday at the National Assembly Standing Committee on Finance, Chairman of the Finance Committee Naveed Qamar said that the condition of 'holding period' would discourage investment in the SCRA. The government should set 3-6 months holding period for making investment in the SCRA. The FBR chairman endorsed the viewpoint of Naveed Qamar. The FBR chairman said that we can propose six months holding period. The FBR has already discussed the proposal with the State Bank of Pakistan (SBP). In case of three months proposal, this should be subject to the approval of the Federal Cabinet. FBR directed to immediately stop sealing Tier-1 retail outlets MNA Mirza Ikhtiar Baig stated that the government must watch interest of the overseas Pakistanis making investment in the SCRA. Later, an official of the SBP joined the meeting online from Karachi. Muhammad Ali Malik, executive director SBP informed the committee that the proposed amendment has nothing to do with the Roshan Digital Account. The proposed change is related to the SCRA and not Roshan Digital Account. There should be some limitation of holding period for keeping investment in the SCRAs. We want to discourage short-term investments in the SCRAs. If they keep investment above one year period, the concessional tax regime should be applicable. To avoid volatility in market, the holding period should be one year for the purpose of making investment in the said accounts. The tax advantage should be given to those investors who would keep their investment for at least one year. According to the assessment of the SBP, there would be no immediate or significant impact on investment in case one year holding period is introduced, the SBP official added. The finance committee proposed six months holding period for availing concessionary tax regime on the SCRAs investments. Copyright Business Recorder, 2025