Islamabad, July 18, 2025 – Rashid Mehmood Langrial, Chairman of the Federal Board of Revenue (FBR), has issued a strong warning that the repeated release of tax fraudsters poses a serious threat to the credibility and effectiveness of Pakistan’s tax enforcement regime.
While addressing a session of the sub-committee of the National Assembly’s Public Accounts Committee (PAC), the FBR chairman expressed grave concerns that letting tax evaders off the hook not only weakens institutional authority but also severely undermines future deterrence efforts. He emphasized that FBR has been legally empowered to identify, investigate, and recover revenue lost due to tax fraud. However, recurring judicial leniency toward offenders dilutes the impact of these enforcement powers.
Langrial revealed that Pakistan is grappling with tax fraud of alarming proportions, with the total volume now exceeding Rs700 billion. He highlighted that sales tax fraud remains a major area of concern, noting that Pakistan’s rate of fraud in this area is significantly higher compared to international benchmarks.
Despite recent improvements in monitoring systems, the FBR chief admitted that the complete eradication of sales tax fraud remains a distant goal. He pointed out that while some progress has been made in reducing the scale of fraudulent activity, widespread tax evasion persists across sectors.
The FBR chairman urged that Pakistan must strengthen its post-audit processes and implement stricter enforcement mechanisms. He particularly called for tougher penalties against those involved in issuing fake invoices, which continue to be a major method used in committing sales tax fraud.
Langrial also informed the committee that the FBR managed to recover Rs200 billion in the last fiscal year, following the resolution of several pending tax litigation cases in various courts. He described this as a significant achievement but reiterated that a consistent and firm approach is essential to sustain progress.
The FBR has consistently maintained that strong deterrence is key to curbing tax fraud. The unchecked release of habitual offenders not only discourages honest taxpayers but also signals weakness in the tax administration system. The chairman reaffirmed the FBR’s commitment to pursuing fraud cases aggressively and called for institutional support to ensure the accountability of tax defaulters.