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–Tax authority pledges faster refunds, crackdown on corruption
BeNewz Report
KARACHI: Federal Board of Revenue Chairman Rashid Mahmood Langrial on Thursday assured Karachi’s business community of swift resolution of tax-related issues and improved facilitation during a visit to Karachi Chamber of Commerce and Industry.
Senior representatives of KCCI briefed officials on key challenges affecting businesses, including delays in tax refunds, complications in super tax installments, and procedural bottlenecks disrupting operations. The meeting was attended by senior customs and inland revenue officials, including representatives from the Large Taxpayer Office.
Responding to concerns, the FBR chief directed Large Taxpayer Office Karachi and customs authorities to expedite resolution of pending issues. He said removing administrative hurdles was essential to ensure smooth business activity in the country’s commercial hub.
Pakistan’s exporters have long flagged delays in tax refunds as a major liquidity constraint. According to State Bank data, delayed refunds increase working capital costs and weaken export competitiveness, particularly in key sectors such as textiles, which contribute nearly 60% of total exports.
Langrial said all legitimate refund claims would be processed promptly in line with legal requirements. He added that improving liquidity for businesses remains a priority as the government seeks to support economic activity and export growth.
Pakistan’s tax-to-GDP ratio remains among the lowest in the region, hovering around 9–10%, according to official estimates. The government has been pursuing tax reforms aimed at broadening the tax base and improving compliance through digitization and enforcement measures.
The FBR chairman emphasized that while the authority is committed to facilitating taxpayers, it will ensure full recovery of due taxes in accordance with applicable laws. He reiterated a zero-tolerance policy against corruption within the tax machinery.
He warned that FBR officials are strictly prohibited from creating unnecessary obstacles or seeking undue favors from taxpayers. The directive is part of broader efforts to promote transparency and restore trust between businesses and tax authorities.
Langrial also urged the business community to report any instances of corruption with credible evidence. He assured that strict disciplinary action would be taken against officials found involved in misconduct.
Pakistan has been working to modernize its tax administration under ongoing reform efforts linked to International Monetary Fund programmes. These reforms include automation of tax processes, risk-based audits, and measures to improve refund systems.
Business leaders welcomed the engagement, noting that consistent dialogue with tax authorities is critical to addressing operational challenges. Analysts say timely refunds and reduced compliance hurdles could improve investor confidence and support formalization of the economy.
The FBR said it will continue working closely with stakeholders to resolve outstanding issues and enhance service delivery, as part of its mandate to strengthen revenue collection and facilitate taxpayers across Pakistan under Federal Board of Revenue.
