ISLAMABAD: Member Inland Revenue Policy and Spokesperson for Federal Board of Revenue Dr. Muhammad Iqbal ruled out a review on the tax revenue targets for the Financial Year 2016-17. We believe that the Federal Board of Revenue has a capacity to meet the revenue challenges. We will utilize all resources and efforts to reach the revenue targets.
He expressed these views while giving an exclusive interview to Customs Today.
He said the Federal Board of Revenue has no plan to reduce the revenue targets, although it is hard yet still achievable. By the 27th of March 2017, the FBR has received 1060,000 tax returns and the growth rate in revenue as compared to last year is around eight percent. Double taxation agreements between Pakistan and Switzerland will open new vistas of cooperation, especially in the areas of exchange of information for tax purposes. It will also provide access to bank information for the tax purposes and such information shall not be refused solely because the information is held by a bank or other financial institution.
The agreement will come into force in Pakistan on first July of the next calendar year. He said we are also seeking information from United Arab Emirates regarding the Pakistani investors. We have sent a letter to the Government of the UAE and sought a list of Pakistani residents and investors. He said Pakistan and United Arab Emirates have an agreement on double taxation and under the provisions of agreement UAE is bound to provide information to Pakistan but we can only make request before the UAE Government and cannot compel them. We are still awaiting the response of UAE.
He disclosed that the Federal Board of Revenue already has sent two letters in last year to the relevant authorities of the UAE but we don’t succeed in receiving a response. He said the numbers of tax returns showed that our tax net is increasing gradually. It needs to be understood that there is no cut-off date for filing of income tax returns. The income tax law does provide a due date for filing of returns but the taxpayers are allowed to file their returns after the lapse of due date and they sometimes file their returns for a tax year after the end of the tax year.
He said a big problem in collection of revenue is that our people don’t want to pay taxes but demand every facility. If people, including business communities, pay their taxes honestly, Pakistan doesn’t need to go to the IMF or the World Bank. In coming budget we are introducing new measures which will be fruitful for bring the people in tax net. The Federal Board of Revenue is also working on new initiatives for taking revenues from the tax evaders. He confirmed that investigations of Panama Leaks are still underway.
