FBR Chairman Calls for Lower Income and Corporate Tax Rates

Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, emphasized on Wednesday the need to reduce income and corporate tax rates, criticizing the practice of collecting taxes primarily for debt servicing.

“It is wrong to collect tax for the whole year and use it to pay off debts,” Langrial remarked. He highlighted that many government officials, traders, and industrialists are fully compliant, paying their due taxes without evasion.

He also pointed out the disparity in Pakistan’s tax system, stating that while 95% of the population lives in poverty, they still contribute through sales tax. Conversely, 5% of the population is wealthy and subject to income tax, although some within this group fail to meet their tax obligations.

In a related development, Govt announced an extension for the 2024 income tax filing deadline to October 31, allowing more time for taxpayers to submit their returns. This extension follows issues caused by a three-day bank closure in Islamabad and Rawalpindi, which disrupted the filing process before the previous deadline of October 14.

The FBR had initially set the deadline for September 30, but with multiple extensions, taxpayers now have until the end of October to fulfill their obligations.