Was not in favour of high taxes on salaried class: FBR chairman

Federal Board of Revenue (FBR) Chairman Malik Amjad Zubair stated that they were not in favour of imposing income tax on the salaried class, citing economic necessities.

Speaking at a National Assembly finance committee meeting chaired by Syed Naveed Qamar on Friday, he explained the efforts to safeguard agriculture, food, and export sectors while managing tax burdens.

Zubair acknowledged opposition to new taxes from the International Monetary Fund but reiterated the necessity due to economic pressures. He emphasised that advance tax mechanisms are standard practice globally.

Committee member Nafisa Shah raised concerns about the increase in withholding taxes.

Zubair noted that the first quarter adjustments for advance taxes are completed swiftly, and weak enforcement necessitates withholding and advance taxes, primarily targeting non-filers.

This year, 6.1 million tax filers were recorded, up from 5.2 million last year, with an anticipated increase of 1.5 million filers. The chairman disclosed the identification of 2.4 million non-filers, including individuals identified through property and vehicle purchases.

The FBR is undergoing a digitalisation update, with Prime Minister Shehbaz Sharif recently approving end-to-end digitalisation efforts. Zubair highlighted that complete digitalisation would take 18 months, aiming for a transparent and independent system.