ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial has revealed that around 9,000 individuals in Pakistan collectively hold bank deposits worth Rs750 billion despite paying no income tax, highlighting significant gaps in the country’s tax system.
The disclosure was made during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, where the FBR chief briefed lawmakers on the tax authority’s proposed operating model and the increasing use of technology in tax administration.
Addressing the committee, Langrial said the FBR’s expanded access to databases had uncovered concerning trends related to tax compliance and income declarations.
According to the FBR chairman, approximately 9,000 people maintain bank deposits totaling Rs750 billion while paying zero income tax. He also stated that a large majority of tax return filers declare lower incomes than their actual earnings, estimating that nearly 98.9 per cent of filers underreport income in their tax returns.
The remarks came as the tax authority outlined plans to modernise tax collection and improve transparency through digital reforms.
Langrial informed lawmakers that the FBR is considering the implementation of a “faceless taxation system” aimed at reducing direct interaction between taxpayers and tax officials. Under the proposed mechanism, tax-related processes would be handled digitally, limiting opportunities for discretionary decision-making and increasing efficiency.
Officials believe the use of technology and data integration can help identify discrepancies between declared income and financial activity, enabling authorities to broaden the tax base and improve revenue collection.
The briefing formed part of broader discussions on tax reforms and measures designed to strengthen compliance, enhance documentation of the economy and reduce tax evasion.
Pakistan has been pursuing fiscal reforms to increase revenue generation and improve tax collection as part of efforts to strengthen economic stability and reduce reliance on external financing.