ISLAMABAD, June 14, 2025 – A tense moment unfolded during the meeting of the National Assembly Standing Committee on Finance as Chairman Syed Naveed Qamar publicly cautioned Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial over proposed enforcement measures included in the Federal Budget 2025–26.
The warning came after Chairman FBR informed the committee that the government is targeting Rs312 billion in new taxation and Rs389 billion in enforcement-driven revenue collection, bringing the total to Rs701 billion in new revenue initiatives.
“You are talking about ‘draconian enforcement measures’—and we will deal with these when the appropriate time comes,” said Qamar, addressing the FBR chief. His remarks reflected growing unease among lawmakers over what they see as overly aggressive strategies to expand revenue collection.
FBR’s Aggressive Revenue Strategy Under Scrutiny
Chairman Langrial’s briefing included a breakdown of initiatives focused on digital enforcement, faceless assessments, and strict compliance monitoring. These are part of a broader FBR transformation plan aimed at closing the Rs7.2 trillion tax gap and raising the tax-to-GDP ratio, which currently lags behind regional benchmarks at around 10.5%.
The enforcement strategy, however, did not sit well with the committee. Lawmakers expressed concern that such measures could hurt small businesses, create bottlenecks at ports, and burden the general public — especially in the absence of proper checks and balances.
Digital Reforms Also Under Fire
The FBR’s broader reform agenda includes:
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Digital Production Tracking
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Digital Invoicing System
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Cargo Monitoring
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Faceless Assessment Systems
While intended to reduce corruption and improve transparency, these digital tools have faced criticism. Committee members highlighted technical glitches, delays in assessments, and cases of misclassification of goods under the new systems, especially in Karachi and other key economic zones.
Call for Balanced Approach
Chairman Qamar and other committee members reiterated that tax enforcement should not come at the cost of economic activity. They emphasized the need for the FBR to adopt a balanced approach—strengthening compliance while providing relief to honest taxpayers and small businesses.
As debate continues over the Finance Bill 2025–26, this exchange suggests that parliamentary resistance could shape the final form of enforcement policies. The Finance Committee is expected to continue reviewing the proposals in the coming weeks.
