Appeals FBR to disallow RAs collection of taxes from its system at Karachi ports, says PRA is all set to achieve target of Rs83b for FY2016-17
LAHORE: Punjab Revenue Authority (PRA) is all set to achieve a target of Rs 83 billion for the financial year 2016-17. Infrastructure Development Cess on clearance of goods and articles is not a double taxation. Federal Board of Revenue (FBR) should disallow RAs collection of taxes from its system at Karachi ports. Raids are being conducted against tax evaders as last resort. The authority has increased number of taxpayers from 8,700 registered taxpayers to 40,000 taxpayers and is striving to increase the number to 50,000 in two years’ time period.
These views were expressed by PRA Chairman Dr. Raheal Ahmad Saddiqui in an exclusive interview with Customs Today. Saddiqui is known as competent, upright and honest officer in administrative services. He has extensive experience to his credit as EDO Finance and Planning besides he also formed Khyber Pakhtunkhwa Revenue Authority (KPRA) and remained Secretary Excise & Taxation, KPK.
He informed this scribe that Punjab Revenue Authority (PRA) is all set to achieve revenue collection target of Rs83 billion for the financial year 2016-17. The authority will fix a target of Rs 120 billion for the financial years 2017-18.
Sadidiqui said that three years ago the PRA was at par with Sindh Revenue Board (SRB), however, now PRA has crossed SRA by collecting additional Rs 6 billion.
PRA has planned to make a difference of Rs12 billion in collection as compared to SRB in the financial year 2017-18, Saddiqui hopped adding that PRA has achieved all this due to continuous and untiring efforts and a comprehensive strategy.
“In the very first place we de-centralized powers and ensured rule of law. Every commissioner, additional commissioner, assistant commissioner and other staff were given powers and targets. They worked on it and met their targets positively’, the PRA chairman explained, adding that earlier no targets and powers were assigned to the employees.
The PRA chairman said that raids against tax evaders are being conducted as last resort because raids and seizures seemed to be inevitable.
Answering a question about raids on Telenor head office in Lahore, Saddiqui said PRA had intimated the company time and again but they paid no heed to it, adopting casual attitude and finally we had to raid and seal the main office. “Now they are ready to resolve issues on table and we have also de-sealed the office. This was the only coercive action against the party during financial year 2016-17 as we had no other option,” he stated.
PRA has become number one tax collecting department that conducted a tax survey in order to know the actual potential of revenue and tax base, he said, adding, “Till May 2015, we had only 8,700 registered taxpayers and now we have crossed the number of 40,000 taxpayers in just two years and are striving hard to take it to 50,000”.
To a query, the PRA chairman said that before his joining, PRA was working on just 16 services, however, with the prudent and carefully contrived strategies, the authority increased the number of taxable services to 62 which would further be increased to 70 taxable services soon.
Progress curve of PRA is so steep that donor agencies are also acknowledging the fact, he said, adding that even if PRA is new tax collecting authority in Punjab, it was able to make a visible difference in tax collection when compared with other tax collecting departments including Excise & Taxation and that too with limited resources and underpaid officials.
He stated that that in order to develop tax culture, PRA has initiated celebrating tax day on April 10 that proved instrumental in our endeavor to make the people of Punjab aware of their tax liability.
“This year FBR has also participated in our programme of celebrating April 10 as tax day. We are working on it to permanently celebrate the day on national level for which we have requested all other revenue authorities and FBR to recognize the day as tax,” the PRA chairman added.
“We have started educating people from all walks of life including youth, media, students and businessmen, businesswomen besides we are also using social media to develop tax culture in society. We have successfully included a chapter in textbook of eighth class for making the new generation aware of the benefits of paying taxes despite strong opposition,” Saddiqui highlighted, adding that PRA is also going to initiate senior and junior internship programs on tax and social welfare.
To a question about proper utilization of taxes, PRA chairman said that taxes are being properly in a number of development projects and people from other provinces admire the pace of development works in Punjab.
He said that Infrastructure Development Cess on clearance of goods and articles is not double taxation.
Saddiqui appealed Federal Board of Revenue to disallow SRB, PRA and KPRA from collecting taxes from their own system at Karachi ports to resolve the dispute.
