Finance Minister Muhammad Aurangzeb announced on Thursday that the government is working to simplify the tax return process for the salaried class and reduce their tax burden. The statement was made during a meeting of the Senate Standing Committee on Finance and Revenue.
The minister revealed that the Tax Policy Wing is being separated from the Federal Board of Revenue (FBR) to streamline operations. Starting from the next fiscal year, the finance ministry will take full responsibility for tax policy, while the FBR will focus exclusively on tax collection.
During the meeting, committee members raised concerns about the performance of both the FBR and the finance ministry. They also questioned how foreign funds, allocated to enhance the FBR’s capacity, are being utilized.
In response, FBR Chairman Rashid Mahmood Langrial informed the committee that the FBR has successfully met the tax-to-GDP target set by the International Monetary Fund (IMF). However, he acknowledged that the tax shortfall recorded during the first half of the current fiscal year could widen in the coming months. Despite this, he expressed confidence that the shortfall would be addressed by the end of the fiscal year.
The meeting also touched on broader issues of tax reform and fiscal management, with the government reiterating its commitment to improving the tax system and providing relief to taxpayers.
