Majority of Pakistanis Outside Tax Net: Chairman FBR

Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, revealed that most Pakistanis remain outside the tax net, with around 60% of the population falling below the income tax threshold.

Speaking at “Think Fest 2025” in Lahore, Langrial pointed out that while 6.7 lakh individuals, including the superrich, are liable to pay taxes, many evade their obligations. “Those who speak on TV about fixing the tax system are themselves tax evaders,” he remarked.

Highlighting the flaws in Pakistan’s tax system, Langrial noted that the structure is poorly designed, with incorrect tax rates, catering to only about 5% of the population. He stressed the need for reforms to address these systemic issues.

Langrial admitted that the tax burden has disproportionately fallen on salaried individuals due to the failure to collect taxes from wealthier segments. He acknowledged that tax rates on the common man and salaried individuals should be adjusted and assured that the government is aware of the need to reduce certain rates.

In a warning to tax evaders, Langrial announced plans for a law that would restrict them from purchasing vehicles, property, and other assets.