PESHAWAR: The Federal Board of Revenue (FBR) established the Inland Revenue Service (IRS) to collect Income Tax, Sales Tax and Federal Excise Duty as Pakistan Customs also serves as guardian of Pakistan borders against the movement of contraband trade.
These were the views of an official Inland Revenue Service Peshawar on Tuesday when he talked to Customs Today at the Tax House Peshawar.
He said Pakistan Customs helps protect the domestic industry, discourage consumption of luxury goods and stimulate development in the underdeveloped areas of the country.
He was asked to differentiate the functions of Inland Revenue Service and Customs Collectorate in the run to generate money through proper obligations on the side of public, he said tax collected through Income Tax, Sales Tax and Federal Excise Duty does help to increase the capacity of regional taxpayers.
Domestic taxes, comprising Income Tax, Sales Tax and Federal Excise Duty, constitute about 90% of the revenue collected by the FBR through IRS.
These taxes are not only similar in essence but are also interdependent in practice, he added.
He further said the assimilation of these taxes into a single administrative structure is going to be made soon.
Spurred by these exigencies and with a view to apply the modern taxation techniques to improve the G.D.P ratio, the Inland Revenue Wing of the FBR was created, combining the three domestic taxes.
It was expected that the inception of this wing would facilitate the taxpayers as it would provide them to carry through their tax matters in one organizational structure. The creation of this wing should be conducive for the tax administration as access to the taxpayer’s data in respect of different domestic taxes would be easily available, he added.
He said it would increase the government expenditure on social betterment of the province if more tax is collected and establishment of mega schemes truly defines the tax pay ability of the residents.
He also called to include various sections under the tax as the historic reforms of the FATA will further empower the government to expand the circle of the FBR functions.
He further said the Model Custom Collectorate provides a major source of revenue to the Government of Pakistan in the form of taxes levied on the goods traded across the borders.
He added that Income Tax, Sales Tax and Federal Excise Duty mean collection by Inland Revenue Service to increase the regional tax valve and capability of the province.
