FBR crackdown against tax evaders from March

The Federal Board of Revenue (FBR) has decided to tighten the noose against the tax evaders, announcing a crackdown from March 2020.

The revenue board has issued notices to 200,000 high networth individuals for the purpose.

These remarks were made by FBR Inland Revenue (IR) Member Dr Hamid Ateeq during a meeting of the National Assembly’s Standing Committee on Finance, Revenue and Economic Affairs, which was presided over by member of the National Assembly (MNA) Faizullah.

Ateeq said that the board had refrained from taking action against tax defaulters owing to its commitment to the traders’ organisations.

However, he added, following the expiry of the agreement signed with traders and after analysing the tax returns till March, the FBR will launch a clampdown against dafaulters.

The FBR officials said that they had a list of high net-worth individuals, but the board was not taking action against them as the implementation of several acts simultaneously may negatively impact the businesses and economy.

The revenue board also stated that as per agreement with traders, the turnover tax will be decreased from 1.5% to 0.5% and the limit of annual turnover tax would be increased to Rs100mn from Rs10mn.

The session was informed that over 700 committees have been formed across the country to help tax authorities bring traders into the tax net.

The FBR officials maintained that proceedings against nontax payers would be carried out with the help of the National Database and Registration Authority (NADRA)’s data.

They further said that all the required information from the banks was available with them and that the deadline for the implementation of the provision of the Computerised National Identity Card (CNIC) – a condition which requires the traders to submit a copy of their CNIC for making purchases above

Rs50,000 – was January 31.

About the taxation issues being faced by the exporters, importers and retail sectors, the committee members expressed their doubt over the targets set by the FBR after removing the SRO 1125.

However, the FBR Member for Policy (IR) stated that the government is working to resolve the problems of the merchants.

The committee was informed that the FBR had made sales tax return of Rs550mn to the export industry in the first five months of the financial year.

The Standing Committee on Finance also reviewed the issue of recovering the house rent from the salaries of federal employees to collect money for the repair of flats.

Committee member Ali Awan said that 5% of the rent was being deducted from the salaries of employees up to grade 16 who had been allotted official accommodation in the capital city.

“There are also flats that are 70 years old and have never been repaired. Where is the budget allocation for Public Sector Development Programme (PDSP) and the quota deducted from the salaries of employees being spent?” he asked.

Awan demanded that the flats be repaired, as lodges and houses for MPs were being maintained and decorated.

He asked the committee to reconsider the matter of money deduction.

Expressing reservations, the committee members asked the

FBR officials if the shortfall of the revenue board was being met by the 5% cut in salary.

The huddle also deliberated on the issue of duty and tax exemption for Chinese companies at Gwadar Port.

The FBR officials told the participants that legislation to regulate concessions to China at Gwadar airport, port authority, tax-free zone and duty was being formulated for which draft had been submitted in the parliament.

The body called on the finance adviser and State Bank of Pakistan governor in the next meeting to discuss the issue.

The draft was part of the ordinance which was withdrawn after objections were raised by the parliament.