FBR plans to unveil new scheme for affluent non-filers of tax
The Federal Board of Revenue (FBR) is considering to launch a new scheme for affluent non-filers of tax and other tax evaders providing them an opportunity to pay their due taxes and bring them under the tax net regime and enhance revenues for the prosperity of the country.
"We are considering to launch a new scheme called "Tax registration inputs with enforcement initiative" in order to bring about 4 million affluent people who were not filing their tax returns and did not pay tax to the government", Asrar Raouf Senior Member Inland Revenue and Spokesman of FBR told journalists at an informal chat here at the FBR House on Friday.
Senior members of the FBR were also present on the occasion. " This is not an amnesty scheme for the non tax payers only we are giving them an opportunity to come under the tax net regime by filing their returns and pay their due taxes to the government for the prosperity of the country", Raouf said. He warned that any non-filer and evader of the tax who did not take benefit from the opportunity and continue to evade taxes, their Computerized National Identity Card (CNIC) would be cancelled and they would not be able to do any business or travel abroad. In this regard the new scheme would be placed before the Parliament for approval. Asrar Raouf expressed the hope that after introducing this new scheme FBR would be able to collect an additional amount of Rs.96 billion for the country.He further informed the journalists that tax collection ratio has been increased by 11 percent during the four months of the current financial year and realized Rs.559 billion.
He added that in the month of October of the current financial year Rs.140 billion have been collected against the collection of Rs.126 billion in the same period. He added that due to strikes in Karachi a loss of Rs.5 billion to 6 billion is incurred to national kitty. He added that so far 1.5 million taxpayers have filed their tax returns while the number should be more than 5 million.
The Senior Member Inland Revenue said that the scheme of Registration inputs with enforcement initiatives"is not a new idea as this scheme has been implemented in the many countries like USA, Spain, Australia and Greek etc and benefitted a lot from the scheme. Replying to a question, he clarified that by introducing this scheme government is not whitening the black money but providing the businessmen and affluent people who had not been filing their returns for the past 65 years and did not pay taxes to the government. Through this scheme these people would be brought under the tax regime and enhance the revenues for the prosperity of the country. He also stressed the need for eliminating Hundi system of transferring money which is causing losses to revenue collection of the country.
"We have a record of 3.8 to 4 million rich people who are possessing assets, paying huge school/ university fees for their children, travelling abroad many time, having dual accounts and did not pay taxes to the government for the past 65 years and we will give them an opportunity to pay their due taxes to avoid any further legal action and come under the tax regime", he remarked.
He added that FBR is subordinate organization of the Ministry of Finance and without approval of the Ministry no decision is taken by the FBR. Asrar Raouf further said that tax policies are home grown and not dictated by anyone and International Monetary Fund is also willing to impose and recover taxes from the affluent people who were not paying their due taxes.
He also dispelled the impression that government would not be able to present its budget without financial support of the fund. Replying to another question, he said that action has been started against illegal and non custom paid vehicles and these are being impounded on daily basis.
He expressed that hope that an additional amount of Rs. 30 billion would be collected through action against illegal vehicles. He added that there is no scheme under consideration for the registration of illegal vehicles.