ISLAMABAD: The Pakistan Business Council (PBC), its pre-budget proposals, has proposed cancellation of Computerised National Identity Cards (CNICs) and passports of the unregistered potential taxpayers who were served notices which returned as ‘unknown’ to ensure compliance.
According to details, the PBC which represents 45 largest private sector business groups including multinationals, has submitted budget proposals to the Federal Board of Revenue (FBR) and sought for the first meeting of the FBR-PBC Joint Working Group.
In the pre-budget proposals, the council pointed out that Identification of potential taxpayers via third party databases had already been made and the FBR needed to issue notices to them. The council proposed that the CNICs and passports of those potential taxpayers should be cancelled whose notices were being returned as ‘unknown’ to ensure compliance.
The PBC regretted that currently a paltry number of about 1 million people were paying taxes out of total population of 180 million which needed to be enhanced. The council suggested filing of tax returns should be declared mandatory for persons having a credit card in their name; taken a personal loan from any financial institution; travelled abroad during last financial year; members of a private club and own urban property of more than 240 square yards or equivalent or an apartment with covered area of more than 1,500 square feet.
It also proposed registration of manufacturing units and retail wholesale trades which owned either a commercial or an industrial utility connection or having minimum size of 500 square feet property.
The Council said that the formal sector was confronted with an unfair competition from the unregistered sectors, adding that it supported an across the board implementation of Value Added Tax (VAT).
It further proposed that the real estate developers should be taxed on a per square foot basis for built up property and a per square yard basis on land developed for sale.
The PBC also termed ‘refunds’ the biggest element of corruption in sales tax arising from zero-rated as well as normal tax regimes and proposed electronic invoicing in compliance with chapter XIV of the Sales Tax Rules, 2006, besides issuance of invoices by the supplier electronically to the buyer and FBR simultaneously.
