ISLAMABAD: The FBR has been contemplating reverting to the circle system immediately as the board expects that the restoration of circle-based system at national level will enable it to document and register business activities in small and medium cities/towns.
As per details, economic activities have been thriving in small and medium size cities including construction of big business plazas, offices and residential houses. Even expensive vehicles are seen every now and then in small and medium cities. There is a need for restoration the ‘Circle-Based System’ to document all such business activities across the country. If government agrees with the proposal, the system would be resorted from next fiscal.
The FBR strongly propose that around 1500 Circles be established across the country at Tehsil level and each Circle can effectively handle 2,000-3,000 taxpayers which would be a major step towards documentation and BTB. The FBR is in favour of reverting to the Circle system immediately with smaller territorial circles with BS-17 and BS-18 officers managing those circles. Under the proposed Circle-Based System, each RTO should comprise of 4 to 5 Commissionerates depending upon the workload/revenue involved. Each Commissionerates should comprise 3 to 5 Ranges headed by an Inspecting Additional Commissioner (BS-19) and each Range should consist of 4 to 5 circles headed by Assessing Officer of BS-16-17 & 18.
The FBR wanted to restore the ‘Circle-Based System’ following failure of functional-based system and gross violations of the Universal Self Assessment Scheme (USAS). After all kinds of experiments and facilitation under the self assessment regime failed, the FBR has reached conclusion that the restoration of ‘Circle-Based System’ is the only method of broadening the tax-base and documentation of economy without compromising automation.
Earlier, there was no automaton under the old ‘Circle-Based System’. Now, the same system can be restored backed by strong automation. Under the ‘Circle-Based System’, each circle can closely monitor the performance of all taxpayers falling within the jurisdiction of each circle.
