Our prime motive is to increase the tax net – Shabbar Zaidi

  • Chairman of FBR clarified no sales tax imposed on edible items including ghee, flour, and sugar.
  • Says that FBR’s target is to broaden the tax net and it will not take any decision that hurts our industry
  • FBR is ready to bring a fixed tax scheme for small retailers.

The chairman of the Federal Board of Revenue (FBR) ShabbarZaidi has stated that no tax has been imposed on edible items including the flour.

He said that FBR’s aim is to enhance tax-base and it is working to achieve this objective. During a press conference in Islamabad, the chairman said:

“Our target is to broaden the tax net and we will not take any decision that hurts our industry or trade.”

He said that detailed discussions have been done with the businessmen to address their concerns.

A textile sector on the path of development:

Expressing satisfaction over the textile sector, Shabbar Zaidi said that the textile sector of the country is on the path of development. Furthermore, he said that we are ready to bring a fixed tax scheme for small retailers.

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He disproved the one of s imposition of tax on flour and other edible items. He also urged the media to support the FBR in creating awareness among people about the tax reforms and expansion of tax base in the country.

“I have spoken to the district administration of Islamabad to take strict action against those involved in tax fraud,”Zaidi said.

FBR to automate the tax system

The chairman said that FBR wants to automate the tax system in order to have less human interference. This way, the board’s reform strategy would be successful, he added.

“The FBR is authorized to send notices people, who own 500-yard house, for property tax.”

The mobile importers:

Mr. Zaidi said that duty-free mobile importers wanted to come into the net but they were willing to pay less against the actual taxes.

“The government is committed to stopping the under-invoicing for documenting the country’s economy,” he said.

He said that the government would not take any decision that is unprofitable for the textile industry. FBR has been engaged in discussions with the business community all across the country.

Mainly, the FBR is discussing two issues; SRO 1125, related to zero-rating. The other is the requirement of Computerized National Identity Card (CNIC) for sales tax, the Chairman told.

“We do not take any decision that would affect the industry and business of Pakistan,” he said.

The requirement of CNICfor sales tax:

Mr. Zaidi said that the CNIC requirement had not emerged in income tax law, rather it came under sales tax law. Out of 220 million people in the country, there are around 47,000 people registered in sales tax. However, only 19,000 are paying tax.

The FBR wants to introduce a fixed tax scheme for small shopkeepers in order to resolve the CNIC issue, the Chairman said. However, he regretted that the ratio of those paying sales tax is very low.

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