FBR Chief Finalize Strategy to Bring All Sectors to Tax Net
- The Federal Board of Revenue has finalized its strategy to bring all sectors to the tax net.
- The govt has directed the district administration to take action against those who have increased the prices of edible products.
- The govt has also planned to introduce a fixed tax scheme for small shopkeepers.
The Chairman of the Federal Board of Revenue (FBR), Shabbar Zaidi, has finalized the strategy to bring all sectors in the tax net.
While discussing the issues of zero-rating of sales tax and imposition of tax on edible items, during the press conference, the Chairman FBR remarked:
“FBR will not take any decision that will affect the industry and business in the country.”
Mr. Zaidi, reiterating earlier stance of no tax on edible items said that this time government had made all prior preparation for documentation.
“We have data of every sector. The FBR had reliable data and would now bring them in the tax net,” he added.
The Chairman said that the government had directed the district administration to take action against those who have increased the prices of edible products in the wake of budget.
However, Mr. Zaidi clarified that the FBR would not take action against any sector referring to the issue of the textile sector.
In the post-budget period, only two issues were under negotiations; removal of zero-rating of sales tax on local sales of five export sectors and requirement of CNIC (Computerized National Identify Card) for sales tax registered persons, he said.
He also said that only registered sales tax payers could ask for the CNIC copy and the requirement of CNIC was needed under the sales tax law and not income tax. He said only 47,000 people are registered in sales tax and only 19,000 are paying sales tax.
The chairman said that the FBR is well aware of all those sectors where the menace of under-invoicing and over-invoicing is taking place.
“We are aware of these practices, the FBR would take corrective measures,” he said.
Fixed Tax Scheme:
Taking about the issue of low compliance of sales tax, the chairman said the government planned to introduce fixed tax scheme for small shopkeepers and it will resolve the CNIC issue.
The Chairman said there is no deadlock between FBR and chambers on the issue of zero-rating of sales tax on local sales of five sectors adding that the issue would be resolve with the stakeholders.
“The FBR would meet representatives of all stakeholders to resolve the issue,” he said.
The chairman said proposed reform measures are meant to reduce human interaction, adding:
“We want to introduce an online tax system in order to have less human interference.”
Dr. Hamid Ateeq, a member of Tax Policy, told that all the measures taken in the budget are meant to document the economy. He said the government has already started the implementation of the Benami law.
“The department is concerned about issuing notices to Benamdars,” he said, adding: “Now the focus would be on persons other than politicians.”
Moreover, the district administrations across the country have been ordered to act against those who have increased the prices of Roti and other edible products.