Federal Board of Revenue (FBR) Chairman Rashid Langrial has said that the government has no plans to increase tax rates, as it would not help achieve the desired revenue targets.
Speaking to media the FBR chairman acknowledged that there is a revenue leakage of Rs1,200 billion in the income tax sector alone, as the top 1% earners in the country were under filing.
Regarding the new tax laws, he mentioned that while the non-filer category has not been completely abolished, it has been rendered inactive. Now, only registered filers will be eligible to conduct transactions.
Langrial outlined stringent measures to improve tax compliance, including sealing premises of businesses with sales exceeding Rs100 million if they fail to register.
He stated that failure to register would also result in appointing a receiver to attach properties and freeze bank accounts. He clarified that the FBR would not directly obtain data from banks but would use algorithms to access relevant information when a specific threshold is crossed.
