CAREER civil services officer Rashid Mahmood Langrial, who recently became the ninth person to be appointed head of the Federal Board of Revenue since August 2018, is in the hot seat. Within days of taking charge of the apex tax collection body, he is realising the enormity of expectations attached to the office he now occupies. During his Monday meeting with Finance Minister Muhammad Aurangzeb, he is said to have expressed doubts regarding the taxman’s ability to squeeze Rs40bn from traders this fiscal year under the Tajir Dost Scheme, which had kicked off to a rather measly start last year. Mr Langrial reportedly asked the Internal Revenue Service representative how the target would be met, considering that the scheme had yielded only a tenth of its budgeted target for this year in fiscal 2024. Not to mention, the various chambers of commerce and industry have been agitating non-stop against the scheme, and seeking even more incentives than the ones already offered.

The short answer to Mr Langrial’s concern is that the target will never be met unless the tax authorities and the government put their foot down. For too long, traders and retailers have evaded the tax net with pressure tactics and political lobbying. They will once again resort to every tactic in the book to try and extend the exemptions they have enjoyed at the cost of the exchequer. It is the responsibility of the FBR and the government to put an end to this. The Tajir Dost Scheme is not a bad scheme: it offers reduced tax rates and simplified tax compliance procedures that other industries would seize upon had they the chance. Therefore, the authorities should abandon their policy of appeasement and adopt a stricter stance by demanding compliance on this matter. When all others are paying through their nose to fund the state, there is no good reason why traders and retailers should get away.

Published in Dawn, August 14th, 2024