ISLAMABAD: The Chairman of the Federal Board of Revenue (FBR), Rashid Mehmood Langrial has stated that our taxation structure need improvement to meet the tax target.
Rashid Mehmood Langrial apprised that there is a need to improve our taxation structure. The issue is that those who should be paying taxes are not doing so, and we have not developed the capacity in the FBR to collect taxes from them.
He also stated that we have gone down the wrong path, and there should be a reduction in taxes. By improving the tax-to-GDP ratio, the tax rate will decrease, and we need to expand the tax base.
Talking to media he said that the tax on the construction sector is higher than the industrial sector, standing at 115%. When houses are sold in cash, they do not remain documented, and as a result, the government cannot collect taxes from such transactions.
He suggested that those who want to rectify past mistakes and move forward transparently should be encouraged.
