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Home Islamabad

AGP expresses displeasure on BTB for not broadening tax base

byM. Faizan
11/01/2019
in Islamabad, Latest News
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ISLAMABAD: Auditor General of Pakistan report has expressed dismay on the performance of Directorate General of Broadening Tax Base (BTB) Federal Board of Revenue and recommended for enhancing the tax base as there is need to evolve a mechanism for those persons, industrial and commercial consumers who are liable to compulsory registration under the tax laws.

In a special audit report on Broadening of Tax Base, Auditor General has said that the task of broadening tax base was taken up in the year 2013 by the Federal Board of Revenue.

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While making assessment of tax provision of section 111 of the Income Tax Ordinance, 2001 regarding concealment of resources may also be invoked in letter and spirit.

The primary objective of the BTB was to contribute towards tax system which was based on equity and public trust. However, results indicated dismal progress.

Report mentioned that data bank of Federal Board of Revenue stored six million transactions for identification of new tax payers, FBR issued notices to 465,165 potential taxpayers and enforced 132,559 new returns and collected Rs1769 million from new taxpayers.

Audit, by using data obtained from Sui Northern Gas Private Limited, Lahore Electric Supply Corporation, Islamabad Electric Supply Corporation and Punjab Motor Registration Authority was also able to identify potential taxpayers which should also have been brought into the tax net.

Auditor general stated that efforts over the years to expand tax base in Pakistan have remained static much to the dismay of the tax authorities and international donor agencies.

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