ISLAMABAD: Federal Board of Revenue (FBR) Chairman Tariq Wajwa is leaving for United States today (Wednesday) to attend negotiations between Pakistan and International Monetary Fund (IMF) and World Bank (WB) starting from April 17 to 19.
“Earlier, Bajwa was to be part of a delegation led by Finance Minister to US but he could join the said delegation because of his engagements in Karachi,” a well-informed source at FBR told this scribe.
Bajwa will lead two-member FBR delegation in the talks. Member Strategic Planning and Research and Statistics (Member Customs) Nisar Muhammad Khan will also assist him in the upcoming parleys.
As part of his preparations, Bajwa has sought updated report from Director General Broadening of Tax Base (BTB) Rahimullah Wazir about efforts and achievements of the FBR in bringing new taxpayers in the tax net. A full brief of statistics and figures has been handed over to him in this regard which will help him in the talks to present stance of FBR.
BTB has gained information (transaction and non-transaction based information) totalling to 240,000 from various source. This information is collated and integrated in the IT Wing of FBR /PRAL along with already available information for preparation of profiles of potential taxpayers.
The provided statistics further include that FBR and its field formation issued notices to the tune of 240,000 for enforcing returns and in cases where returns have not been filed in potential taxpayers, orders under section 122C of the Income Tax Ordinance, 2001 have been passed and a demand over Rs14 billion have been created. New taxpayers have already paid amount of tax of Rs. 570 (m).
BTB has taken recovery measures against chronic defaulters. In 278 cases bank accounts have and warrants for arrest in 40 cases have been issued and in 117 cases vehicles have been attached and impounded. In 78 cases properties have been attached for auction/sale. Bajwa will share this data with negotiators from IMF and WB
Similarly, Nisar Muhammad Khan has provided figures of revenue collection by FBR in first eight months of the current fiscal year. Till February FBR had collected Rs 1526 billion revenue which was not up to the expected mark.
The provided information also include problems confronted by the Inland Revenue and Customs in collection of all three kinds of taxes; main problem is being faced in sales tax collection due to smuggling because neither sales tax nor income tax can be charged out of smuggled items. Moreover, smuggling is also detrimental for local industry.
Bajwa will highlight FBR’s efforts on enhancing tax revenue collection and will also seek assistance for infrastructure development and capacity building of field formations. He will also share FBR’s future strategy to raise tax to GDP ratio with the negotiators.
