ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has ruled out introducing any new tax measures despite a Rs275 billion shortfall in tax collection during the first four months (July–October) of the fiscal year 2025–26.
Addressing a presentation on economic reforms at FBR headquarters, Langrial said the authority would focus on broadening the tax base and improving compliance rather than taking emergency steps to plug the gap.
He revealed that income tax return filers rose by 18%, reaching 5.9 million in 2025–26, while taxes paid with returns for 2024–25 totaled Rs69 billion. The tax-to-GDP ratio also improved to 10.33% in 2024–25 — the highest in 23 years, up from 8.83% the previous year.
Langrial emphasised that achieving the government’s goal of an 18% tax-to-GDP ratio within the next few years would require strong federal-provincial coordination, with 15% from federal taxes and 3% from provincial revenue and the Petroleum Development Levy (PDL).
He acknowledged operational challenges faced by enforcement teams, citing incidents of violence — including the murder of two tax officers near Kohat tunnel — and noted that Rangers personnel have been deployed to ensure their safety during operations.
The chairman said the income tax gap stands at Rs1.7 trillion, with Rs1.2 trillion attributed to high-income earners. Improved revenue performance has been noted in key sectors such as tobacco, supported by digitalisation and structural tax reforms.
Langrial reaffirmed that the FBR remains committed to reform-driven revenue enhancement and expanding the tax net, not through new taxes but by strengthening enforcement, data integration, and compliance mechanisms.
