Lahore : Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has pledged to root out corruption from the revenue authority, declaring that there will be zero tolerance for misconduct.

Speaking at the Afkaar-e-Taza ThinkFest 2026 in Lahore, Langrial said officials attempting to use influence for postings or transfers were immediately suspended and dismissed. He noted that for the first time, a CSS officer had been arrested on corruption charges.

Langrial argued that Pakistan’s tax rates should be lower than those in regional countries, as excessively high taxes discourage growth. He explained that tax collection powers rest with the federation, which then transfers funds to provinces for utilization. He added that Pakistan has 42 million households, but only 7 percent own air conditioners, stressing that higher-income groups must contribute more in taxes.

He revealed that 325,000 individuals had declared themselves non-liable, while 600,000 acknowledged they could be taxed. He criticized the tendency to avoid taxes by claiming government dishonesty, calling it an unreasonable excuse. According to him, Rs472 billion in income tax remains undeclared, with many people failing to disclose property purchases in their returns.

Langrial highlighted underreporting and tax evasion as major challenges, pointing out that Pakistan’s sales tax collection rate is 3.1 percent compared to a potential 5.5 percent, while income tax collection is also below target. He emphasized the need to boost exports to ease pressure on foreign exchange reserves and GDP growth, and said local production must be made competitive without relying on tariff protection.

He announced that reforms are underway, with AI and modern technologies being used to audit returns and track undeclared assets. Revenue from sugar mills increased by Rs260 billion this year, while efforts are being made to enhance collections from the cement and textile sectors. By October 2024, 4.9 million taxpayers had filed returns, rising to 5.9 million in the current fiscal year, including one million new filers. Tax collection as a share of GDP has risen to 10.3 percent.

Langrial acknowledged that setting tax targets for the next fiscal year would be difficult due to inflation and growth pressures. He admitted that salaried and corporate taxes are higher than in regional countries but insisted that compliance must improve.

Former finance minister Miftah Ismail, also present at the event, admitted mistakes during his tenure but said the current government has opportunities to correct them. He recalled being removed from office while on a trip to the United States, noting he had planned to abolish Rs6–7 billion in taxes upon his return.

The FBR chairman’s remarks signal a renewed push for reforms aimed at strengthening compliance, curbing corruption, and expanding Pakistan’s revenue base.